Insta
Representative image. (Anshuman Poyrekar/Hindustan Times via Getty Images)
Indian stock exchanges, primarily Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), raised $5.52 billion from 161 initial public offerings (IPOs) in the first ten months of this year (2018), reports Mint.
An IPO is the first time a company sells its shares to the public. Before this, it is considered a private company with a limited number of shareholders.
However, the report, EY India IPO Trends: Q4 2018, noted that the performance of the Indian stock exchanges has been less than satisfactory in the last quarter (Q4) of the current year. Only two IPOs were filed at the NSE and BSE in the fourth quarter, compared to nine in Q4 2017.
“IPO activities in India dropped significantly in Q4 as compared to the last quarter on account of market corrections and various other domestic and global factors. Companies are adopting a ‘wait-and-watch’ policy and at the same time, preparing and filing DRHP with the regulator, to launch their IPOs immediately when the timing is right,” said Sandip Khetan, Partner at EY India.
Earlier it was reported that Indian stock exchanges had recorded the highest number of IPOs anywhere in the world in the first six months of 2018. But the US held the pole position for the full year with IPOs raising $60 billion from the country's markets.
Also, though the total number of Indian IPOs of small and medium enterprises (SMEs) has remained the same as last year, 30 per cent more capital was raised by these companies in 2018.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest