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Bloomberg
India is expected to see a steady flow of small-to-mid-sized deals next year as investors grow wary about large listings after the disastrous performance of some major technology initial public offerings.
Several of the country’s major startups shed billions of dollars in value since their listing as concerns over high valuations and rising interest rates globally dented demand for technology stocks. The selloff worsened as early investors pared stakes after the end of lock-up periods.
Investors will likely be more selective heading into 2023
as recession risks dim the prospects for growth stocks. Traders may instead turn their attention to smaller deals in other sectors.
India’s markets regulator currently has about two dozen IPO applications including SoftBank Group-backed Oyo Hotels and Tata Play Ltd.
The overall fundraising via IPOs next year “will be a little lower because it will be a choppy market but I think the primary market activity will continue reasonably well,†said Bank of America Corp’s Mumbai-based analyst Amish Shah.