Source: IANS

India’s equity market witnessed highest Initial Public Offerings (IPO) globally due to strong domestic inflow in the market, according to a report. 

A wealth management firm said, “In the first half of 2024, more than 5,450 companies have been listed across the world, in which India’s share was about 25%.”

“Last year also a large number of IPO listings were seen in India. The reason for this was the high inflow by domestic investors in emerging companies and sectors”, the report said.

Globally, IPO markets reached their peak in 2021. During this period, 2,388 companies were listed all over the world and cumulatively they raised $453.3 billion.

This was the largest amount raised through IPOs in the last 20 years.

The report further said, “BSE IPO index with 348% absolute gains has outperformed benchmark BSE 500 index’s 165% gain by a wide margin, thanks to strong listing gains.”

Small and Medium Enterprises (SME) IPOs have also performed well over the years.

“The average listing gain on listing of SME IPOs in 2019 was around 2%, which has increased to 74% in 2024. Listing gains of mainboard IPOs reached their highest level in 2020 and have been range bound around 30% since then”, it added.

One reason for the boom in the IPO market is the positive returns of the Indian stock market.

Since the beginning of this year, Nifty rallied about 17% and Sensex approximately 16%.

The reason for the rise in the stock market is India’s strong economy.

India’s GDP grew at the rate of 8.2% in FY 2023-24 and is expected to grow at the rate of 7.2% in the current financial year.

(This story was taken from a syndicated feed, and edited only for style by Gujarat Samachar Digital staff)

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