India Accounted for Highest Number of IPOs Globally, Says RBI Bulletin

Mumbai:Even as the inflation indicator-- the consumer price index inflation (CPI) came below the central bank's 4 per cent target for the second time in August, food price volatility remains a contingent risk said

the September Bulletin of the Reserve Bank released on Friday. “The prospects of headline inflation averaging 4.5 per cent in the second half of 2024-25, as set out in the August 2024 resolution of the monetary policy committee, have improved. Nonetheless, in light of the recent experience, food price volatility remains a contingent risk,” the bulletin read.

The article on ‘State of Economy’ in the Bulletin authored by a team lead by RBI Deputy Governor Michael Debabrata Patra said that global economic activity is slowing down while the pace of disinflation remains sluggish, provoking caution among monetary policy authorities. In India, domestic drivers – private consumption and gross fixed investment – were robust and net exports remained sequentially positive in their support to gross domestic product (GDP) growth in Q1:2024-25. The underperformance of agriculture was compensated for by a buoyant manufacturing sector and resilient services. Household consumption is poised to grow faster in Q2 as headline inflation eases, with a revival of rural demand already taking hold.

The article also noted that India has beaten other countries to rank number 1 in the IPO activity in the first half of calendar year 2024. It said that September is set to be the busiest month for IPOs – mainboard and SME – in 14 years, with over 28 companies entering the market so far.

“Resource mobilisation through initial public offerings (IPOs) has remained robust in 2024 so far, as India accounted for the highest number of IPOs globally (27 per cent by volume) in H1:2024, led by public offerings of small and medium enterprises (SMEs).” In terms of the amount raised, India accounted for 9 per cent of total proceeds raised through IPOs. Investor enthusiasm in the primary segment can be gauged by the fact that the IPO of a housing finance company in the second week of September garnered bids of over ₹3 lakh crore, said the central bank bulletin.