India witnessed a record 184 IPOs in 2023 so far, including 30 in October alone, outpacing the US, China, and Hong Kong due to strong economic activity and investor sentiment.
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Proceeds drop
Despite the surge, total proceeds dropped 15% YoY to $4.9 billion, with some IPOs like LIC and Delhivery leading to investor losses of 36% and 17%, respectively.
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Political risks looming
Analysts warn that political risks from upcoming general elections in 2024 may impact stocks and pose challenges for IPOs.
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FIIs withdraw
Foreign funds withdrew $1.5 billion in the week ending October 27, marking the largest weekly withdrawal since September 2022.
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Mixed IPO prospects
The prospects for new deals are mixed. Honasa Consumer's IPO has seen only 78% subscription as of now, while Cello World's Rs. 1,900 crore IPO was nearly 39 times oversubscribed.
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Past year's IPO tally
A total of 151 companies went public in India in 2022, as opposed to 134 in 2021. Total proceeds in 2022 amounted to $7.5 billion in 2022 compared to $17.3 billion in 2021.