Indian IPO market experienced a significant slowdown in Q1, 2022: E&Y
As per the Global IPO trend Report by Ernst & Young (EY) Volatile market conditions have led to a significant slowdown in the Indian initial public offer (IPO) market during the first quarter of 2022 as compared to the first quarter of 2021. The Report highlighted that in Q1 2022, 16 new IPOs were introduced in the Indian market raising $995 million via three main market IPOs, compared to 23 IPOs during the same period last year, which raised $2.57 billion, indicating a decline of 60% in funding raised and a decline of 82% in the number of deals.
The report predicted that issues like geopolitical tensions; stock market volatility; price correction in over-valued stocks from recent IPOs; growing concerns about a rise in the commodity and energy prices; the impact of inflation and potential interest rate hikes; as well as the COVID-19 pandemic risk will continue to hold back full economic recovery are major reasons behind slowdown in IPO market.
