Continuous policy reforms and the general upbeat sentiment on the economy are driving up business activity in India. According to Baker & McKenzie’s newly released India IPO Report, the estimated total value of IPOs in the country is set to hit USD5.8 billion by the end of 2016, more than double the total value for 2015.
A key development sustaining the India IPO market momentum is the passing of the new Goods & Services Tax (GST) Bill, which comes into force in April 2017. For the first time, India will have a common tax market, which is expected to boost the country’s GDP growth among other positive long-term impacts.
Domestic listings have dominated the IPO scene in India, but the improved business climate is also making companies there consider opportunities outside of their home market. In terms of sectors, materials, industrials and financials have been the most active in the last five years and also in 2016. The healthcare and consumer products and services sectors are also busy with a good pipeline of deals in the coming months. “The flurry of IPO activity is likely to continue for the rest of 2016 and well into 2017, driven by upbeat economic sentiment, improved business confidence, easing inflationary pressure and stable foreign direct investment inflows,” said Ashok Lalwani, Head of Baker & McKenzie’s India Practice.
More information is available on BakerMcKenzie.com, including an India IPO Infographic that gives at-a-glance facts and figures on the country’s IPOs.