Indian bourses have outperformed their global counterparts in terms of the number of Initial Public Offerings (IPOs) in 2023, as per a recent report by EY India.

What Happened: The global professional services firm, unveiled its Q4 IPO Trends report, underscoring India’s stellar performance in the IPO market. The report indicated that the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have clinched the top spot globally in terms of the number of IPOs in 2023.

The main markets, including BSE and NSE, logged 31 IPOs in the fourth quarter of 2023, marking a significant 72% surge compared to the same period in 2022. The Small and Medium Enterprises (SME) markets also demonstrated impressive growth, witnessing 61 IPOs in Q4 2023, a robust 79% increase compared to Q4 2022.

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“Looking ahead to Q4FY24, the Indian IPO market is anticipated to continue its upward trajectory, buoyed by optimistic investor sentiment, a robust economy, and expectations of lower inflation and rate cuts in 2024,” said Adarsh Ranka, partner and financial accounting advisory services leader at EY India.

The report further highlighted that the Power & Utilities, Health, Automotive & Transportation, and Banking & Capital Markets sectors led the IPO surge. The fourth quarter of 2023 accounted for nearly 40% of the total listings in 2023, signalling a potentially brighter outlook for 2024.

The Indian IPO market has been on a record-breaking spree. According to a previous trends report by EY India, Q3 2023 alone saw a staggering 425% surge in IPOs, bringing in a whopping $1.77 billion. This was a significant leap from just four IPOs in the same period the previous year. The SME sector also kept pace, raising an impressive $165.76 million through 48 IPOs in the same quarter.

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