New Delhi, Jan 11 (NationPress) Driven by strong fundamentals and a resilient economy, the Indian equity markets are anticipated to experience yet another record-breaking year for initial public offerings (IPOs), according to recent reports.
The fundraising landscape in the country has been widespread across various sectors. Domestic investments have demonstrated resilience despite geopolitical risks and market fluctuations, as noted in a report by Kotak Investment Banking.
The investment bank highlights that deal sizes are consistently on the rise, with over 30 deals exceeding $500 million last year. Multinational companies (MNCs) are viewing India as a preferred destination for listings, launching their subsidiaries on Indian stock exchanges.
A total of 91 companies managed to raise nearly Rs 1.60 lakh crore by going public last year. Cumulatively, firms secured more than Rs 3.73 lakh crore from the equity market, which includes IPOs, follow-on offers, and qualified institutional placements (QIPs) in the previous year, according to reports.
Following the significant $3.3 billion IPO of Hyundai last year, LG Electronics is now eyeing the potential of the Indian market with plans for a $1.3 billion IPO. LG Electronics’ CEO Cho Joo-wan has indicated that the tremendous business potential in India motivated the company to pursue an IPO in the region.
The South Korean firm submitted a draft to the Indian bourse operator for an IPO of its Indian subsidiary, LG Electronics India Ltd., in early December. This offering, which is expected to take place in April or May, could raise up to 2 trillion won ($1.3 billion).
The Indian markets experienced volatility last year, with the Nifty index surpassing 26,250 and the BSE Sensex exceeding 85,900 in September, resulting in both indices gaining approximately 21 percent in the first nine months of CY24.
Reports indicate that over 90 companies have already submitted their draft red herring prospectus (DRHP) to the market regulator, SEBI.
As per Kotak Securities, India's macroeconomic outlook remains stable, characterized by solid growth and a manageable fiscal and inflation outlook (aside from a recent spike).
“Conversely, net interest margins (NIMs) and bank credit costs have shown positive surprises, while the IT services sector has witnessed a better-than-expected recovery in revenues,” the report stated.
