IPOs in India

IPOs in India

Performance highlights

FY 2017 to FY 2019

October 2019 home.kpmg/in

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 ? 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

Partner and Head CFO Advisory

Karan Marwah

Partner and Head 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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