There were nine initial public offers (IPOs) in November, the most in a month this year and the fourth highest in just over a decade, said a report on Monday suggesting that companies were hopeful of the market rising.
In November, the Nifty 50 touched its lifetime high of 18,614 and the Sensex rose to its peak of 63,284. There were 32 IPOs with an issue size of $7.6 billion till November this year, said the Dealtracker report by Grant Thornton Bharat.
The biggest IPO in November was Five-Star Business Finance; it raised more than Rs 2,700 crore. The Rs 20,557 crore IPO of the Life Insurance Corporation of India (LIC) was the biggest this year.
Money raised by the 32 IPOs till November 2022 was considerably lower than the $15.4 billion raised by 53 IPOs in the same period in 2021
Overall deal value and volume down
November had the lowest number of deals in 2022. The total number of deals in November 2022 was down 40 per cent to 119 from 198 in November 2021. The deal value year-on-year (YoY) was 37 per cent down from Rs 3,537 crore to Rs 2,219 crore.
“Over the past six months, the global energy and food supply shocks emanating from the Russia-Ukraine war have intensified. The muted deal activity shows a significant drop in both the M&A and PE deals on the back of a cautious and conservative approach taken by strategic and financial investors, considering the prevailing global uncertainties,” said Shanthi Vijetha, partner of Growth at Grant Thornton Bharat.
The energy and natural resources sector saw the highest trade value both in merger and acquisition (M&A) deals as well as private equity (PE) deals. By volume, start-ups saw the maximum number of deals.
The biggest M&A deal in November was the acquisition of the energy solutions company Vector Green by Singapore-based Sembcorp for $335 million. The transaction, on completion, will add 583 MW of renewable assets to Sembcorp’s portfolio in India.
In private equity, a $400-million investment by Kohlberg Kravis Roberts (KKR) in Serentica Renewables was the biggest deal.
“Both M&A and PE values were dominated by the energy and natural resources (cleantech) sector, showing the attractiveness of the segment for both strategic and financial investors. This signifies that there is a big opportunity in this sector,” Vijetha added.
