Press release

3 Oct 2019 New Delhi, IN

Recent fiscal reforms likely to instill confidence in capital markets

NEW DELHI, 3 October 2019. India recorded 10 IPOs ($0.86b proceeds and $2m median deal size) in the third quarter of 2019 with Indian stock exchanges (BSE and NSE, including SMEs) ranking sixth globally in terms of number of IPOs according to EY India IPO Trends Report: Q3 2019

Press contact
EY India

Multidisciplinary professional services organization

  • Consumer Products and Retail sector was active with three IPOs, followed by Real Estate, Hospitality & Construction and Technology with two IPOs each (including main and SME markets)
India recorded 10 IPOs ($0.86b proceeds and $2m median deal size) in the third quarter of 2019 with Indian stock exchanges (BSE and NSE, including SMEs) ranking sixth globally in terms of number of IPOs according to EY India IPO Trends Report: Q3 2019.

In the main markets (BSE and NSE), there were four IPOs in Q3 2019 versus three and seven IPOs in Q3 2018 and Q2 2019, respectively. While comparing Q3 2018 and Q2 2019, there is an increase of 33% and decrease of 43%, respectively. However, the recent announcement on the fiscal reforms by the Government of India is expected to improve market sentiments and liquidity in the economy.

A similar trend was witnessed in the SME markets too. There were six IPOs in Q3 2019 versus 42 IPOs and 14 IPOs in Q3 2018 and Q2 2019 respectively, representing a significant drop of 86% as compared to Q3 2018 and decrease of 57% as compared to Q2 2019.

Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India said, “Corporate earnings are likely to be positively impacted owing to the recent fiscal reforms announced and demand in the upcoming festive season. Markets have reacted positively to the steps as announced by the Government of India and that is likely to result into re-rating of the Indian markets in near to medium term. Additionally, reduction in interest rates will make industries more competitive and may result in a better story towards equity value creation. We expect to see positive momentum around IPOs in the first half of 2020. Companies who were already considering raising money in the public markets will look at the market movement as a positive step to go ahead with their IPOs.”  

Consumer products and retail sector was active with three IPOs, followed by real estate, hospitality and construction and technology with two IPOs each (including main and SME markets). In terms of the issue size, IPO by Sterling & Wilson Solar Ltd. from construction sector was the largest in Q3 2019.

In Government of India’s (GoI’s) recent policy decision, significant changes have been introduced in the corporate tax turning India into an attractive destination for corporate investment. Indian companies are now required to pay corporate tax @ 25% for all existing companies or 15% for newly set up companies in the manufacturing sector. Additionally, GoI has discontinued minimum alternate tax as well. This is likely to give significant boost to market activity in near to medium term and Indian markets have reacted very positively to this development.

In terms of the global context, the backlog of high-quality IPOs continues to grow as issuers await more favorable market conditions, pushing IPO activity down across many markets in Q3 2019 compared with Q3 2018. Overall, 256 IPOs came to the market in Q3 2019 with total proceeds of US$40.2b, a decrease of 24% by volume and 22% by proceeds compared with Q3 2018.The first nine months of 2019 (YTD 2019) saw a decline of 26% by deal volume (768 IPOs) and a 25% drop in funds raised (US$114.1b) versus YTD 2018. While deal numbers were down, average first-day returns on the main markets were 27% and average current post-IPO performance was 32%.

Global findings

Americas IPO markets impacted by quiet third quarter and equity market volatility: On a quarterly basis, the Americas saw 47 IPOs that raised US$11.9b in Q3 2019, a drop of 30% by deal volume and 10% by proceeds from Q3 2018. Both YTD 2019 IPO deal volume and proceeds also fell behind compared with the same period in 2018, with 160 IPOs in the first nine months of 2019 (a decline of 22%) and US$46.9b in proceeds (a decline of 9%).

However, US exchanges accounted for the majority of IPOs in the Americas region, 79% by number of deals and 95% by proceeds YTD in 2019. This was driven by several high-profile technology unicorns that have gone public so far this year. The NASDAQ and NYSE ranked first and second respectively by proceeds globally in YTD 2019.

Muted Asia-Pacific IPO activity lifted by Shanghai’s STAR Market: In Asia-Pacific, YTD 2019 IPO volume was down 9% (436 IPOs) and proceeds decreased by 27% (US$46.1b) compared to the same period in 2018. The launch of Shanghai’s STAR Market offset more muted activities in Hong Kong, Japan and Australia in Q3 2019, with Asia-Pacific exchanges seeing a decline of 2% by deal volumes (173 IPOs) and 29% by proceeds (US$23.7b) in Q3 2019 compared to Q3 2018. However, ongoing trade tensions between China and the US continue to impact IPO activity across parts of the region.

However, Asia-Pacific continued to dominate global IPO activity in Q3 2019, representing seven of the top 10 exchanges by volumes and five of the top 10 exchanges by proceeds. Average first day returns for IPOs on Asia-Pacific’s main markets rose to 51%, while average current returns soared to 71%, predominantly because of Shanghai’s STAR Market activity.

Japan saw a quiet quarter for IPO activity, with deal volume declining 57% (12 IPOs) and proceeds dropping 74% (US$488m in total) versus Q3 2018. In Southeast Asia, performance rebounded considerably as the region saw 40 IPOs come to market with proceeds of US$2.9b. Southeast Asian exchanges saw 48% higher deal numbers and 555% higher proceeds during Q3 2019 compared with Q3 2018 (27 IPOs and US$440m in proceeds).

EMEIA continues to face geopolitical headwinds: In EMEIA, deal volumes and proceeds were down from YTD 2018 with EMEIA exchanges posting 172 IPOs (a decline of 52%) and raising a total of US$21.1b (also a decline of 41%). Ongoing US-EU-China trade tensions have dampened both market sentiment and the economic outlook in EMEIA. At the same time, with no deal in sight, Europe and UK are bracing for the risk of a hard Brexit in Q4 2019.

Despite these challenges, EMEIA accounted for three of the top ten exchanges globally by proceeds in Q3 2019 (Deutsche Börse with US$1.7b from 1 IPO, NASDAQ OMX with US$1.3b from 3 IPOs and India’s National and Bombay Exchanges with US$858m from 9 IPOs). Cross-border IPO activity increased slightly to 10% in YTD 2019 from 9% in 2018.  Additionally, investor sentiment and appetite for IPOs could improve in Q4 2019 due to a longer than expected low interest rate environment and supportive monetary policy. 

Notes to Editors

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation is available via For more information about our organization, please visit

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients. For media queries, please contact Shreya Sabharwal -

About EY’s Growth Markets Network

EY’s worldwide Growth Markets Network is dedicated to serving the changing needs of high-growth companies. For more than 30 years, we’ve helped many of the world’s most dynamic and ambitious companies grow into market leaders. Whether working with international, mid-cap companies or early stage, venture backed businesses, our professionals draw upon their extensive experience, insight and global resources to help your business succeed.

About EY’s Initial Public Offering Services

EY is a leader in helping companies go public worldwide. With decades of experience, our global network is dedicated to serving market leaders and helping businesses evaluate the pros and cons of an initial public offering (IPO). We demystify the process by offering IPO readiness assessments, IPO preparation, project management and execution services, all of which help prepare you for life in the public spotlight. Our Global IPO Center of Excellence is a virtual hub, which provides access to our IPO knowledge, tools, thought leadership and contacts from around the world in one easy-to-use source.

About the data

The data presented in the Global IPO trends: Q3 2019 report and press release is from Dealogic and EY teams. Q3 2019 (i.e., July-September) and YTD 2019 (January-September) is based on priced IPOs as of 18 September 2019 and expected IPOs in September. Data is up to 19 September 2019, 9 a.m. UK time. All data contained in this document is sourced to Dealogic, CB Insights, Crunchbase and EY unless otherwise noted.


Nearly half (44%) of global mining companies rank license to operate (LTO) as the biggest risk to their business, according to the Top 10 Business Risks and Opportunities - 2020. The survey of more than 150 global mining executives’ shortlists the top 10 risks facing the sector, and sees LTO retain the top position as it evolves beyond the narrow focus of social and environmental issues. 

Global IPO activity graph

Appendix: January 2019 to September 2019 global IPOs by sector

Number of IPOs
Percentage of global IPOs
Proceeds (US$b)
Percentage of global capital raised
Consumer products and services 52 7% $4.9 4%
Consumer staples 44 6% $7.9 7%
Energy 31 4% $6.2 5%
Financials 49 6% $8.3 7%
Health care 124 16% $18.4 16%
Technology 179 23% $41.5 36%
Industrials 104 14% $9.5 8%
Materials 71 9% $3.9 3%
Media and entertainment 34 4% $2.2 2%
Real estate 40 5% $7.5 7%
Retail 32 4% $2.6 2%
Telecommunications 8 1% $1.3 1%
Global total 768 100% $114.1 100%

Source: Dealogic, EY