Earnings revival, stability key for IPO marker success: EY survey

Respondents, which included PE and non-PE firms, name cash flow, return on equity as key financial factors in evaluating an IPO; brand strength, market position among non-financial factors

Strong corporate earnings, and stability in the markets and economy are the key drivers for improvement in IPO activity, a survey conducted by EY reveals. Meanwhile, respondents, which included private equity (PE) and non-PE firms, said cash flow and return on equity (ROE) were the most important financial factors while evaluating an IPO.  

Among the most critical non-financial factors for PE firms were brand strength and market position followed by corporate governance practices. For non-PE firms, management credibility and experience was the most critical non-financial factor, as per EY India’s ‘IPO Readiness Survey Report’ released on Tuesday. Over