The Hindu Business Line : Indian IPO market ranks 7th in global mop-up

New Delhi, Dec 26 The $8.3-billion raised on Indian bourses through 95 initial public offerings (IPOs) in 2007 was the fifth-largest in terms of number of issues and the seventh-largest in terms of the proceeds for the year globally, according to Ernst and Young data.

China led with total IPO proceeds of $54.4 billion raised through 222 issues, according to data compiled till November by the consultancy firm. The cumulative value of IPOs on Indian bourses in 2007, however, was just marginally higher than the single largest IPO of the year by Russia’s VTB Bank, which raised $8 billion in May.

Globally, IPOs raised a record capital of $255 billion till November in 2007, according to the data. There were as many as 1,739 IPOs during January to November 2007, while another 91 public issues are estimated to have hit the capital markets during December.

In India, the largest IPO during the year was by realty giant DLF, which raised about Rs 9,187.50 crore (over $2 billion). E&Y said the strength of the Indian economy, stock market, corporate profits and private equity fuelled IPOs in 2007. During 2006, the Indian market had seen 78 IPOs raising $7.23 billion.

BRIC countries

The study noted that 14 of the top 20 IPOs were from emerging BRIC countries (Brazil, Russia, India and China), which raised $106.5 billion in 382 deals so far this year compared to $89.6 billion raised in 302 deals in the same period of 2006.

According to the data, Asia-Pacific accounted for 46 per cent of the worldwide IPO issues, ahead of Europe, West Asia, and Africa (EMEA), which together accounted for 35 per cent and North America 14 per cent.

Despite accounting for only 4 per cent of the total number of IPOs till November, the Hong Kong Stock Exchange (HKSE) was the leading exchange by capital raised, attracting a 13 per cent market share, mainly on account of some of the year’s largest listings, including China CITIC Bank and China Railway.

NYSE was ranked second in terms of capital raised (11 per cent), attracting 3.6 per cent of total listings driven by a number of large US deals, including Blackstone Group and MF Global.

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