India was the most active regional market during the first quarter of current calendar year with 26 IPOs, followed by the UK with 12 IPOs and Saudi Arabia with 7 IPOs, according to EY Global IPO Trends: 2017 1Q report.
Avenue Supermarts, the operator of retail chain D-Mart, has completed its USD 281 million IPO on March 21, 2017. It was the largest IPO by proceeds since the IPO of PNB Housing Finance in October 2016.
This IPO came at a time when share markets are rallying, with the BSE Sensex Index at its highest level on March 17 since March 2015 and the Nifty crossing its earlier record high. Benchmarks gained 12 percent in Q12017, backed by outstanding performance of BJP in state elections and stable earnings despite demonetisation.
BSE Limited (Rs 1,243 crore IPO size), Shankara Building Products (Rs 350 crore), CL Educate (Rs 239 crore) and Music Broadcast (Rs 488.5 crore) were other IPOs during the quarter.
Vish Dhingra, Executive Director with an Indian member firm of EY Global, said, “India saw a promising start to the IPO activity in the first quarter despite global political uncertainty setting a stage for an accelerated growth throughout 2017. India’s re-emergence amongst a strong well governed economy gives further impetus to inbound investors? interest.”
With positive macroeconomic factors, continuing regulatory and tax reforms and a robust investor and business sentiment, 2017 promises to be a healthy IPO year, he added.
“Government’s disinvestment plan would provide a significant impetus to public sector listings whereas banking, insurance, technology and consumer sectors are likely to drive IPO volumes,” said Pankaj Chadha, Partner with an Indian member firm of EY Global.
Upcoming elections in some other key European markets like France and Germany might impact cross border opportunities for Indian entities resulting in possibly higher domestic traction, he feels.
Globally, the IPO activity for Q12017 recorded the most active first quarter by the global number of IPOs since Q12007 (with 399 IPOs raising USD 47.5 billion), EY Global said.