India received 22 IPO initial public offers in the first three months of 2021, worth more than $ 2.5 billion. These IPOs came amidst a much more upbeat atmosphere in the country’s capital market. This trend is likely to continue in the next quarter as well, It has been said in a new report.
The IPO report released on Wednesday by leading consultancy EY India stated that consumer products, retail, diversified industrial products, automotive, and transportation were the most important in terms of numbers in the IPO market in the first quarter of the calendar year 2021.
According to the report, these IPOs have linked to the main market as well as SME (Small and Medium Industries) markets.
The fresh report states that the IPO market is expected to perform well in the second part of 2021 after a solid performance in the first quarter.
There were 22 IPOs in the first quarter of this year. The companies raised $ 2.5 billion through these 22 IPOs. Of these, five IPOs are related to the SME space.
The IPO of Indian Railway Finance Corporation was the largest initial public offer in the first quarter with an issue size of $ 634 million.
This report stated that 17 IPOs were listed in the first quarter of 2021 in the main markets (BSE and NSE). It is noteworthy that only one IPO came in the first quarter of 2020. At the same time, 10 companies came out with their IPOs in the fourth quarter of 2020.
What is an IPO?
IPO means “Initial Public Offering” ie “Initial Public Offer”. Through this process, a company brings an issue and offers its shares to the public for the first time. Any company that decides to go public can bring an IPO.