3 Asian Legal Business | October 2024 Cover Story Further cementing India’s dominance, the country topped the global IPO market in the first eight months of 2024, with 227 transactions amounting to $12.2 billion. This remarkable performance can be attributed to robust market sentiment, a favourable macroeconomic environment, and a surge in investor interest driven by the fear of missing out. Both the Small and Medium Enterprise (SME) and mainboard IPO segments have contributed to this success, buoyed by strong demand from local retail investors and institutions. The country’s legal markets have responded swiftly to this new normal, with more law firms launching and building up capital markets practices to get on board the IPO gravy train. Market leaders Shardul Amarchand Mangaldas & Co and Cyril Amarchand Mangaldas have in particular attracted the country’s top talent as they look to consolidate their position at the top of the table. Growth factors A significant shift in investment patterns among Indian households has played a crucial role in fuelling the IPO boom. There has been a noticeable movement of funds from traditional fixed deposits and savings accounts to mutual funds. The share of bank deposits in gross financial savings of households has declined to 29.4 percent from its long-term average of 33 percent, while the share of mutual funds has seen a substantial increase to 6 percent from a mere 2 percent. This realThe first half of 2024 saw an unprecedented milestone: One out of every three initial public offerings (IPO) globally originated from India, transforming the country into the fastestgrowing and hottest IPO market on the planet. This market momentum reached new heights in September 2024, with 41 companies submitting IPO documents – the highest number ever recorded in a single month. This surge underscores the growing appetite for public listings among Indian businesses and the increasing confidence of investors in the country’s economic prospects. Listing leviathan High valuations, increased market depth, enhanced liquidity, growing regulatory faith, and a surge in the number of expanding companies have combined to catapult India to the forefront of global IPO activity. By Nimitt Dixit • India dominates global IPO market with unprecedented growth • Shifting investment patterns fuel demand for new offerings • Regulatory efforts enhance market attractiveness and investor confidence
RkJQdWJsaXNoZXIy MjA0NzE4Mw==