Indian firms raise Rs 6,000 cr via 10 IPOs in July-Sept quarter

According to the EY India IPO Trends Report Q3 2019, Indian stock exchanges (BSE and NSE, including SMEs) ranked sixth globally in terms of number of initial public offerings (IPOs) in the third quarter of 2019. Indian firms had raised $0.87 billion through 22 IPOs in the corresponding period last year (July-September 2018). During the third quarter of this year, the main markets (BSE and NSE) recorded four IPOs as against three in the year-ago period.

A similar trend was witnessed in the SME markets too as there were six IPOs in Q3 2019 versus 42 IPOs a year-ago. The report further noted that the recent fiscal reforms are likely to instil confidence in capital markets and is expected to improve market sentiments and liquidity in the economy. “Corporate earnings are likely to be positively impacted owing to the recent fiscal reforms announced and demand in the upcoming festive season. Markets have reacted positively to the steps as announced by the Centre and that is likely to result into re-rating of the Indian markets in near to medium term,” said Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India.

The IPO of Indian Railway Catering and Tourism Corporation (IRCTC) was subscribed 77.91 times so far on the final day of bidding. The IPO to raise about Rs 645 crore received bids for 157 crore shares against the total issue size of 2 crore scrips, according to data available with the exchanges till 1530 hours. IRCTC’s IPO was subscribed 3.25 times till the second day of bidding on Tuesday.