As many as 153 initial public offers hit the Indian stock market this year, raising USD 11.6 billion, according to an EY report that says activity "looks good" for 2018 as well.
According to the report, the fourth quarter (October-December) of this year saw 22 IPOs hitting the market, an increase of 47 per cent quarter-on-quarter (Q-O-Q) in terms of number of deals.
"India's BSE, NSE and junior markets recorded a 74 per cent increase in deal numbers in 2017 compared with 2016, with 153 IPOs raising USD 11.6 billion," the report said.
In Europe, the Middle East, India and Africa region (EMEIA), BSE and SME exchanges recorded the highest proceeds worth USD 5.5 billion through 17 IPOs, the EY Global IPO Trends: 2017 (Q4) report added.
The largest IPO by proceeds was General Insurance Corp of India worth USD 1.7 billion in the region. "The stability of the political landscape in India with continued focus on reform agenda by the government and significant tax reforms as proposed by the US regulator is likely to trigger another wave of strong growth in the capital market to enjoy a preferred position in terms of capital allocation by investors.
"The Indian IPO market in particular looks good for FY 2018 with the return of foreign institutional investors and strong investor sentiment creating a bullish investment climate," said Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India.
The report further said that 2017 saw the highest deal numbers and proceeds on record, reflecting the country's economic strength and rising investor appetite. The combination of primary market growth and overall economic growth is set to make India a highly attractive emerging market for investments in the coming months, it said.
"The current market valuations offer a great opportunity to existing investors, however sustenance of the bull run in the long run will depend on a balance between offer for sale and fresh equity for growth," said Vish Dhingra, Partner, EY India.
"India's IPO market looks good for 2018. The combination of primary market growth and overall economic growth is set to make India a highly attractive emerging market for investments for the coming months," the report added.
Emerging markets contributed strongly to overall IPO performance, with India's BSE and NSE recording a 74 per cent increase in deal numbers in 2017. The top three sectors by highest number of IPOs in EMEIA region are technology, industrials and financials.