INSUBCONTINENT EXCLUSIVE:
Illustration: Ajay Mohanty3 min read Last Updated : Sep 27 2024 | 12:10 PM IST
Primary market, it seems, is not only luring investors
back home but also globally
A recent report by GlobalData, a London-based data analytics firm suggests that 822 Initial Public Offers (IPO) aimed to raise $65 billion
in the first eight months of calendar year 2024 (CY24) till August
This is a 17.4 per cent jump from 2023 when 1,564 listings during the same period planned to mop up $55.4 billion via this
route.
Investors, the report suggests, are shifting towards larger, more valuable IPOs at the global level despite the reduced number of
two years, with greater emphasis on the financial sustainability and profitability of newly listed companies
This change signals a more discerning approach from investors, given the backdrop of tighter monetary conditions and persistent market
transactions, totaling 575, amounting to $23.7 billion in value, while North America had 149 deals valued at $25.4 billion, GlobalData
said.
India toped the APAC region with 227 transactions totaling $12.2 billion in the first eight months of 2024, the report said,
primarily due to a higher number of small & medium enterprises' (SME) IPOs
The US came in second with 133 deals of $23.1 billion, while China ranked third with 69 transactions worth $5.3 billion, the report
resurgence in private equity and venture capital-backed listings
Investor sentiment towards equities, particularly IPOs, continued to improve, buoyed by the strong aftermarket performance witnessed in
according to the GlobalData report were technology and communications, registering 135 transactions with a total value of $6.4 billion,
followed by financial services with 113 deals ($11.6 billion), construction with 79 transactions ($3.9 billion), and pharmaceuticals and
healthcare with 75 deals ($7 billion).
At the global level, companies planning for IPOs, Gandhi said, are now increasingly prioritising
revenue growth, profitability metrics, and sustainable business strategies, reflecting a broader trend towards long-term financial
resilience and responsible growth.
Going ahead, the IPO market, he believes, will continue to be influenced by a complex set of factors,
including shifts in monetary policy, geopolitical developments, and evolving investor preferences.
"Amidst these, companies that
demonstrate strong financial fundamentals and clear growth can appeal to an increasingly selective investor base
The ability to showcase resilience and long-term sustainability will be key for businesses seeking to attract capital in this evolving
Technologies, NTPC Green Energy, Afcons Infrastructure, Tata Play, and Vishal Mega Mart aim to raise nearly Rs 60,000 crore via IPOs over
the next few months.First Published: Sep 27 2024 | 12:09 PMIST
