India’s initial public offering (IPO) market is poised for a strong finish in 2023, with a robust pipeline driven by significant fundraising activities. In the third quarter, IPO proceeds exceeded $9 billion, marking a record for that period, as reported by Bloomberg. This surge brought the total fundraising for the year to over $13 billion, positioning India for one of its most successful years on record.
After a slow start earlier in the year, activity began to increase significantly, largely fueled by substantial IPOs from National Stock Exchange of India Ltd., SBI Funds Management Ltd., and Manipal Health Enterprises Ltd., which collectively raised over $4.3 billion. The ongoing enthusiasm in the primary market contrasts with a broader equity market facing volatility; the NSE NIFTY 50 index has dropped about 13% this year, making it the second-worst performing major equity market after Indonesia.
Despite this, strong domestic liquidity and demand from institutional investors allowed companies to access financing, even as valuation scrutiny has intensified. Samarth Jagnani from Morgan Stanley noted that while market volatility may affect individual transaction timing, fundamental drivers of market activity remain strong. Forecasts suggest that total fundraising by the end of 2026 could reach the record levels of the previous two years, each exceeding $20 billion.
A substantial number of companies have received regulatory approval for IPOs, including major names like Oravel Stays Ltd. and Torrent Gas Ltd., with more waiting for clearance. Investment bankers indicate that, depending on market conditions, several large IPOs could launch in the upcoming months, further supporting a potentially record-setting year.
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