India's IPO market remains robust despite equity fluctuations

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India's IPO market remains robust despite equity fluctuations
Credit: © Reuters.

In the face of equity fluctuations and a sell-off of ₹7,477 crore (INR100 crore = approx. USD12 million) by foreign portfolio investors (FPI) this October, India's Initial Public Offering (IPO) market has demonstrated resilience. Seventeen companies, including Capital Small Finance Bank, have filed their Draft Red Herring Prospectus (DRHP) for IPOs, indicating a strong filing activity.

This robust activity comes even as indices such as Nifty and Nifty midcap 100 recorded declines of 1.8% and 4.2%, respectively. Kotak Investment Banking highlighted the strong domestic investor demand for small and midcap IPOs despite global macroeconomic volatility caused by high interest rates, inflation, and crude prices.

They also projected large-sized issuances in the future, citing India's advantageous market position. Additionally, a strong foreign investor demand has been observed for follow-on issuances from well-established companies. This trend appears to be diverging from that of IPOs.

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