Activities in the primary market have witnessed a significant downturn between January and March this year for a variety of reasons, from global market volatility to rate action by central banks around the world.
The EY said in its Global IPO Trends report on Monday that the country had seen only 16 Indian IPOs as against 23 IPOs in Q12021 of 12022, resulting in a 60% drop in revenue raised through offers and an 82% drop in the number of deals.
In the first three months of this year, IPOs in three major markets raised ারের 995 million, equivalent to মূল 2.57 billion in the same period last year. The three largest IPOs as of March were Adani Wilmer, Vedanta Fashions and AGS Transact Technologies, with consumer goods and retail being the most active sectors, followed by diversified industrial products. The SME segment raised $ 17.46 million through 13 IPOs in the first quarter of this year.
Martin Steinbach, EMEIA IPO Leader, EY, says, “Current geopolitical tensions and widespread uncertainty in many EMEIA (Europe, Middle East, India, Africa) equity markets are forcing IPO dealmakers to look at alternative options or consider delaying their IPO. Calm water appears. We have already seen a number of short-term IPO suspensions that have calmed the first quarter of this year. ”
However, YY believes there is a strong pipeline for IPOs later this year. More than 20 companies submitted offer documents in the first quarter of the current calendar year. The list is a mix of traditional companies and new age companies with long track records in the consumer, pharmaceuticals, technology, logistics and financial services sectors.
The Securities and Exchange Board of India, meanwhile, has made a number of amendments, such as changes in disclosure for issue material, revised rules for credit rating agencies (Monitoring Procedure) and revised rules for price bands (now capped at 5%. Is maintained).
Following the high valuation of several loss-making companies and the depletion of investors’ assets, the regulator has issued a consultation on the issue price basis, specifically for the release of ‘Key Performed Indicators’ from loss-making companies.
EY expects strong activity in the private market, with more than 10 companies gaining unicorn status in Q12022. “PE / VC investments continue to do well in 2022, with January-February 2022 investments ($ 10.3 billion) more than double the January-February 2021 (US $ 4.1 billion) (4.1 billion), but 7.6% less December than the previous two months November. 2021, ”the report said.