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IPO pipeline in India seen active in 2023 on smaller deals

IPO pipeline

IPO pipeline in India active

IPO pipeline – As investors become leery of huge listings following the dismal performance of some major technology initial public offerings, India is anticipated to see a consistent flow of small-to-midsized deals over the course of the upcoming year.

Since going public, a number of the biggest startups in the nation have lost billions of dollars in value due to waning interest in technology stocks and worries about exorbitant valuations. As early investors reduced their positions after lock-up periods ended, the selloff got worse.

As the likelihood of a recession increases and growth stock prospects deteriorate, investors will probably be more picky going into 2023. Instead, traders can focus on smaller transactions in other industries.

IPO pipeline

The SoftBank Group-backed Oyo Hotels and Tata Play Ltd. are two of the roughly twenty IPO applications that India’s markets regulator is now reviewing.

Amish Shah, an analyst with Bank of America Corp. in Mumbai, said that the overall amount raised through IPOs “may be a bit lower since it will be a bumpy market but I think the primary market activity will continue relatively well.” “Appetite for IPOs will exist.”

In India this year, smaller listings have also commanded a large portion of the market. Despite the fact that the South Asian nation’s new share sales revenue fell by 59% from a record high last year to around $6.9 billion, the number of firms that went public climbed by roughly 10%, demonstrating the predominance of smaller deals.

Only two businesses raised more than $500 million through initial public offerings (IPOs) in India this year: Delhivery Ltd. ($684 million) and Life Insurance Corp. of India ($2.7 billion), the largest IPO in the history of the nation. 11 newbies accumulated more than that with their postings last year.