Reports cited that driven by strong fundamentals and resilient economy, the Indian equity markets are likely to see another record-breaking year for IPOs.
Fundraising activity has been broad-based so far across sectors, according to a report by Kotak Investment Banking. Domestic investments had provided the resilience amid geopolitical risks and market volatility.
According to the investment bank, deal sizes are constantly increasing across products with more than 30 deals worth $500 million last year. MNCs prefer India as a listing destination by making their subsidiaries debut on Indian bourses.
At least 91 companies have collectively raised almost Rs 1.60 lakh crore through going public last year. Firms have taken over Rs 3.73 lakh crore from the equity market-whether IPO, follow-on offers or QIPs-last year, according to reports.
After the mega $3.3 billion IPO of Hyundai last year, LG Electronics now eyes India's market potential with planned $1.3 billion IPO. LG Electronics' CEO Cho Joo-wan has said that the huge business potential in the Indian market is what drove the company to pursue an IPO in the country.
The South Korean company filed a draft with the Indian bourse operator for an IPO of its Indian unit, LG Electronics India Ltd., in early December. The offering, anticipated in April or May, is expected to raise up to 2 trillion won ($1.3 billion).
Indian Markets were highly volatile last year. The Nifty crossed 26,250 while BSE Sensex touched 85,900 in September, and both the indices had risen roughly 21 per cent in the first nine months of CY24.
According to reports, over 90 companies have so far filed their draft herring red prospectus (DRHP) with the markets regulator SEBI.
According to Kotak Securities, the macro positioning of India continues to be good, with robust growth and BoP (currency) outlook, as well as a manageable fiscal and inflation outlook barring the recent spurt.
"On the other hand, banks' NIMs and credit costs surprised on the positive side, while the IT services sector's revenues recovered better than expected sequentially," it said.
Read also| Morgan Stanley Forecasts 18% Rise in Sensex by End of 2025
