IPO activity drops in September quarter amid volatility in secondary market

IPO activity witnessed a slump during the three months ended September, amid sharp volatility in the secondary market. The quarter saw only 10 deals — 78 per cent lower than the previous quarter. In terms of number of deals, India ranked sixth globally.

Total IPO proceeds, however, were only 6 per cent lower, thanks to the large-ticket IPOs of Sterling and Wilson Solar, and Spandana Sphoorty. So far this year, 51 IPOs (including SME listings) worth a cumulative $2.4 billion have taken place. On a year-on-year basis, the number of deals and IPO proceeds is 66 per cent and 54 per cent lower than the same period in 2018, shows data compiled by EY India. The consultancy firm expects IPO activity to remain dull for the remaining part of the year, but expects a pick-up in the first half of the next calendar. “We expect to see positive momentum around IPOs in the first half of 2020. Companies that were already considering raising money in the public markets will look at the market movement as a positive step to go ahead with their IPOs,” said Sandip Khetan, IPO leader at EY India.

Source: EY India