Only four IPOs in March quarter but India leads in share sale by large corporates: EY

EY, though, states that there is a strong pipeline for IPOs in H2CY23 and beyond.

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26 Aug, 2025 12:21

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The market has been bad for fundraising not just in India but across the world. This is underscored by the fact that notwithstanding a mere four initial public offerings (IPOs) by larger companies in the first quarter of calendar year 2023, India topped the list.

EY in its IPO trends report said proceeds raised through the main market equated to $107 million via four IPOs compared to $995 million during Q1 via three IPOs in 2022, a decline of 89 percent in proceeds raised and an increase of 33 percent in the number of deals. At $50 million, the Divgi TorqTransfer Systems IPO was the largest in terms of funds raised between January and March 2023.

On the other hand, the SME or small and medium enterprise market saw much more activity. The SME segment raised $82 million via 38 IPOs during Q1 in 2023 versus 31 IPOs in Q1 in 2022 that garnered $37 million, an increase of 23 percent in the number of deals and 123 percent in proceeds raised, EY said.

The consulting company said it continues to see robust activity in the private market wherein PE/VC investments in 2023 have started on a positive note with January 2023 inflows being higher than the previous month by 30 percent in terms of value, though lower than January 2022 by 17 percent. The scarcity of larger rounds witnessed in 2022 is expected to continue into 2023, and investors are expected to be very selective, it added.

Around 15 companies have filed their draft IPO papers in Q1 of 2023 compared to around 10 companies in the fourth quarter of 2022. These include companies across sectors such as consumer, pharmaceuticals, technology and financial services.

“India is a bright spot in the global economic landscape,” said Adarsh Ranka, financial accounting advisory services leader and partner at an Indian member firm of EY Global. “While the IPO activity has remained subdued, companies are using this period to be better prepared for launching their IPO early next year (before or after the general election).”

Nearly half a dozen companies have withdrawn their IPO filings due to market conditions or the regulator Securities and Exchange Board of India having returned their offer documents in the last quarter.

Veenit Surana, partner, EY India, said that the India IPO market has shown resilience and growth in Q1 2023 despite ongoing global uncertainties and relatively smaller-ticket issues.

“The market's strength is a testament to the Indian economy's potential for growth. We expect IPO momentum to increase in the future, with domestic and international investors playing important roles,” Surana said.