Just over 110 companies ranging from online grocers to food and beauty delivery startups have listed their shares in Mumbai this year, raising nearly $ 18 billion, according to data compiled by Bloomberg. The costs incurred by the banks behind these first sales of shares are more than four times higher than the previous record of 2017, figures provided by Prime Database, based in New Delhi.
âIt has been an extremely busy year, something I haven’t seen in my 30-year career,â said Jayasankar Venkataraman, Head of Equity Capital Markets at Kotak Mahindra Capital Co. in Mumbai. “The investment bankers brought work home and they weren’t completely turned off.”
The surge in IPOs, which came amid a rally in the local benchmark stock index that hit an all-time high in October, was led by companies such as One 97 Communications Ltd.,
Ltd. and PB Fintech Ltd. The wave of listings in India followed the larger trend in Asia, where companies have raised around $ 181 billion this year, an unprecedented level.
One 97 offers digital payment services under the Paytm brand; Zomato is a food delivery startup; and, PB Fintech operates an online insurance marketplace called Policybazaar.
Many more share sales are slated for next year in India, in addition to the mega-listing offered by state-owned Life Insurance Corp. of India, which could raise at least Rs 400 billion ($ 5.3 billion).
The largest bank in the country,
, could mop about $ 1 billion by selling a stake in his mutual fund business through an IPO. More Retail Pvt., A grocery chain backed by Amazon.com Inc., is considering an offer of up to $ 500 million. The e-commerce company and Walmart Inc. unit, Flipkart Online Services Pvt. and digital education startup Byju’s Pte. are also preparing for the first share sales.
Kotak Mahindra’s Venkataraman expects 2022 to see a similar amount of fundraising or a little more. But risks such as the spread of the omicron variant of the coronavirus, rising inflation and rising interest rates could weaken sentiment in the market, he added. The S&P BSE Sensex has already broken its all-time October 18 close.