New Delhi, Feb 20 (IANS) The year 2023 witnessed a surge in the number of companies listed on Indian bourses, with a total of 243 companies making their debut, the highest annual tally in at least six years, as per S&P Global Market Intelligence data. However, the aggregate transaction value of the Initial Public Offerings (IPOs) fell more than 9% to $7.10 billion, mainly due to the absence of big-ticket listings.
The IPO activity in India is expected to remain strong this year, as the number of listings rose more than 65% in 2023. This boom is a result of companies looking to capitalize on India’s robust economic growth, young population, and the government’s increased focus on digitization. India has stood out as a bright spot for IPOs in 2023, as activity slowed in other major markets across the globe.
According to a PwC report released in January, India took the third spot among global markets in terms of IPO proceeds in 2023, reflecting a shift in the sources of capital and maturing local markets. The report also highlighted that India’s National Stock Exchange (NSE) surpassed Hong Kong in terms of market capitalization in November 2023, reaching nearly $4 trillion.
S&P Global Ratings anticipates solid consumer and investment dynamics to propel India’s real GDP growth to 6.4% in fiscal 2024, 6.4% in fiscal 2025, and 6.9% in fiscal 2026. The NIFTY 50, which represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange, rose 19.4% from January 2, 2023, through December 29, 2023.
The surge in the number of listed companies, despite the decrease in aggregate transaction value, signifies the potential for significant growth in the Indian capital market in the coming years.
(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)
–IANS
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