The year 2017 will be known as the year of initial public offerings as record number of companies went for equity issuance. As many as 153 companies raised Rs 75,859 crore in the calendar year 2017, the largest in a single year in the history of Indian capital markets. In fact, the mop-up in 2017 is even larger than Rs 56,896 crore that companies raised from the primary markets between 2011 and 2016 cumulatively. A report by EY says India’s BSE, NSE and junior markets recorded a 74% increase in deal numbers in 2017 compared with 2016.

Spurt in listing

The IPO market in the country scaled new heights in 2017 as retail and institutional investors look for productive avenues to invest in a market with a shrinking interest rate, low bond yields, capped gold investments and real estate investments under scrutiny. The key indices – S&P BSE Sensex and NSE Nifty 50 delivered positive returns for the second consecutive year. In 2017, the BSE Sensex and Nifty have delivered 27.9% and 28.6% returns, respectively making it the best year for equities since 2014. This was on account of strong portfolio flows and hopes of an improvement in economic growth and corporate earnings.

Companies as diverse as Eris Life Sciences, Indian Energy Exchange, Bombay Stock Exchange, HUDCO, SBI Life Insurance, General Insurance Corporation of India sold shares in the market. Most IPOs and QIPs were in the nature of exit or sell-downs by existing investors or for balance sheet strengthening. The last 18 months have seen IPOs of companies from several new sectors such as life and general insurance, asset management companies, new-age banks, retailing and consumer.

Growth-via-IPOs-2017-1

Amount raised (Rs 100 crore)
Year Via IPOs Via SME IPOs
2000 2953
2001 296
2002 1981
2003 1700
2004 13121
2005 9890
2006 19852
2007 34179
2008 16904
2009 19544
2010 37535
2011 5966
2012 6835 103
2013 1284 335
2014 1201 267
2015 13614 260
2016 26494 537
2017* 65923 1520

*All figures are till November 2017

So, why did so many companies go for IPOs in 2017?

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