India IPO Returns Beat U.S. as Funds Chase High-Growth Companies
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Forty-seven IPOs raise $1.5b this year, twice the sum in 2015
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Companies tapping growing assets with funds amid market rally
Amid India’s bull market celebration, it’s the newcomers that are having the biggest parties.
The 47 IPOs priced this year have returned an average 41 percent, more than four times the climb in the benchmark S&P BSE Sensex, data compiled by Bloomberg show. The gain is double the 19 percent mean for U.S. deals, and ahead of the 9 percent offered by first-time sales in Europe, the figures show.
Microfinance providers, a city-gas supplier, a staffing firm and a diagnostics chain are among companies that have raised $1.5 billion since Jan. 1, more than twice the amount from a year earlier. That’s happened as a buoyant stock market prompted private equity investors including Sequoia Capital to exit from some of these investments. New sales may reach a record in the year to March, the regulator forecasts, as investors chase companies riding the services boom in the world’s fastest-growing major economy…
India IPO Returns Beat U.S. as Funds Chase High-Growth Companies
