India, Brazil, Egypt, Israel and the UAE, are among 29 countries, which hosted more than $1 billion worth of IPOs last year, marking a globalisation trend set to continue through 2006, according to the third annual global IPO report released by Ernst & Young (E&Y) on Monday.
India had evoked lively investor interest even though the amounts raised fell from $2.9 billion in 2004 to $2.3 billion in 2005, reflecting fewer privatisations, the number of transactions surged from 21 to 53, placing India in the fourth position in Asia, following China, Japan and South Korea.
Global liquidity combined with solid domestic earnings and aggressive expansions, continuing low U.S interest rates, which are spurring investments in emerging markets, and growing competitiveness of Indian companies at the international level, are turning the country into one of the hottest markets for new equity offerings.
"Going by current trends, 2006 is expected to be another good year for the IPO market in India. The RBI has recently tightened the rules for GDR and ADR issues, wherein companies not listed in India will not henceforth be allowed to raise foreign equity, including convertibles. This may result in a growing number of domestic offerings in the future and we see increasing interest in aviation, banking, infrastructure, retail, real estate and sugar," noted Mr R. Agrawal, director, E&Y.
While the financial sector dominated the overall funds mobilised, IPO activity in India was fairly spread.
India had evoked lively investor interest even though the amounts raised fell from $2.9 billion in 2004 to $2.3 billion in 2005, reflecting fewer privatisations, the number of transactions surged from 21 to 53, placing India in the fourth position in Asia, following China, Japan and South Korea.
Global liquidity combined with solid domestic earnings and aggressive expansions, continuing low U.S interest rates, which are spurring investments in emerging markets, and growing competitiveness of Indian companies at the international level, are turning the country into one of the hottest markets for new equity offerings.
"Going by current trends, 2006 is expected to be another good year for the IPO market in India. The RBI has recently tightened the rules for GDR and ADR issues, wherein companies not listed in India will not henceforth be allowed to raise foreign equity, including convertibles. This may result in a growing number of domestic offerings in the future and we see increasing interest in aviation, banking, infrastructure, retail, real estate and sugar," noted Mr R. Agrawal, director, E&Y.
While the financial sector dominated the overall funds mobilised, IPO activity in India was fairly spread.