IPOs in India - KPMG

IPOs in India

Performance highlights

FY 2017 to FY 2019

October 2019

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Foreword

The Indian capital markets have

seen a fair amount of activity in

the last three years. While the

markets have moved largely in

sync with the ebbs and flows

of the economy, there have

been several developments on

the regulatory front that will

enable greater integration of our

economy with the global economy

and further easing the flow of

capital across borders.

On its part SEBI continues to

play a proactive role in driving

forward reforms and ease of

doing business in the Indian

capital markets. These include

forward looking changes such

as enabling issuance of shares

with differential voting rights,

changes to the start-up listing

norms, proposed framework for

direct listing of Indian companies

overseas, amongst others. At the

same time there is a heightened

focus on compliance ¨C not just

compliance in letter, but in the

spirit of the regulations, and

greater accountability for access

to and use of public capital.

Some examples of this include

the continuing evolution of the

Regulations related to corporate

governance pursuant to the

recommendations of the Kotak

Committee, prohibition of insider

trading, fair market conduct and

framework for regulating conduct

of intermediaries.

With reference to the global

economy, the World Bank recently

revised its growth rate forecast

for 2019 to 2.6 per cent, down

from its 30 bps higher projection

in January 2019. The rate is at

its lowest level since 2016. The

revision has been driven by the

trade tensions involving United

States, China, Mexico and

European nations, which have

impacted global investments.

With a number of countries

reporting inverted yields on bonds,

there are murmurs of another

global recession impacting market

sentiments globally.

On the positive side, there

remains a healthy pipe line of

companies looking to raise capital

in the primary markets. With a

stable government in India, policy

reform is expected to pick up

pace and should set the stage

for a pick-up in primary market

activities even as an increasing

number of unicorns and startups

? 2019 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (¡°KPMG International¡±), a Swiss entity. All rights reserved.

mature to becoming public listed

entities. SEBI has also pushed

for adoption of newer platforms

and structures, including the Real

Estate Investment Trusts (REIT)

and Infrastructure Investment

Trusts (InvIT), both of which

have now debuted in the Indian

market, but still have some way

to go before being considered

as mature. Both SEBI and the

government are working on other

initiatives to make the capital

markets deeper and attract more

sources of capital.

Our inaugural study on the

primary issuances in the Indian

markets provides some insights.

We hope you find this interesting

and relevant.

Sai Venkateshwaran

Karan Marwah

Partner and Head

Partner and Head

CFO Advisory

Capital Markets

? 2019 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (¡°KPMG International¡±), a Swiss entity. All rights reserved.

? 2019 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (¡°KPMG International¡±), a Swiss entity. All rights reserved.

About the report

This publication is an analysis of the performance of

equity IPOs that were listed on the main exchanges

i.e. Bombay Stock Exchange (BSE) and National Stock

Exchange (NSE) during the three Financial years ended

31 March, 2017 (FY17); 31 March, 2018 (FY18) and 31

March, 2019 (FY19).

The publication analyses the relative performance of

IPOs of the 85 companies that were listed during FY17,

FY18 and FY19, across various parameters including but

not limited to their listing performance, the use of funds

raised and cost of issue.

We have used several parameters to assess the data

available, including categorising the companies into

government backed or Public Sector Undertakings (PSUs)

and private sector companies, Private Equity (PE) backed

and non-PE backed companies.

The analysis has been done using publicly available

data wherever possible. The information presented is

only informative and does not promote any product

or company.

? 2019 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (¡°KPMG International¡±), a Swiss entity. All rights reserved.

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