161 initial offers hit market till Nov 2018

Indian stock exchanges ranked second globally in terms of number of initial public offerings (IPOs), raising $5.52 billion from 161 offerings till November this year, according to a report.

At the BSE and the National Stock Exchange, there were only two IPOs in fourth quarter of this calendar year, compared with nine and three in fourth quarter of 2017 and third quarter of 2018, respectively, said EY India IPO Trends: Q4 2018 report. A similar trend was witnessed in the small and medium enterprise (SME) market. 

There were eight IPOs in fourth quarter of 2018, compared with 31 and 42 in fourth quarter of 2017 and third quarter of 2018, respectively, showing a drop of 74 per cent and 81 per cent, respectively, it said.

Industrial sector - construction and engineering - was the most active in terms of number of IPOs, whereas the financial services sector was at the top in terms of issue proceeds. "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 and National Leader, Financial Accounting Advisory Services, EY India.