Unstoppable IPO Fever in the Chinese Stock Market... Will It Break the All-Time Record?

130 IPOs and 5 Trillion KRW Raised This Year
More Than Half of Last Year's Record
"Inflow of Foreign Companies Like Hyundai Motor Will Be a Major Boost"

Last year, the Indian stock market had a record-breaking year with 238 companies going public, and it is expected to continue the IPO (Initial Public Offering) boom this year, potentially setting a new record.

On the 13th (local time), CNBC cited FactSet data, reporting that "so far this year, 130 companies have newly listed on the Indian stock market, raising 313 billion Indian rupees (approximately 5 trillion KRW)," adding that "India's IPO boom shows no signs of slowing down." This means more than half of last year's record of 238 listings and 614 billion Indian rupees (about 10 trillion KRW) raised has already been achieved.

[Image source=Reuters Yonhap News]

In particular, India's IT startups are leading the IPO frenzy. CNBC pointed out that grocery delivery company Swiggy, online travel portal Ixigo, and software-as-a-service chain Unicommerce are at the peak of the listing momentum. Dhruva Jyoti Sengupta of Wise Private Middle East explained, "Venture capital and private equity firms view the Indian stock market as the optimal place to attract retail investors' buying interest after exit strategies following investments."

Attention is also focused on the influx of foreign companies into the Indian stock market. Recently, Bloomberg reported that Hyundai Motor Company plans to apply for an IPO of its Indian subsidiary as early as this month and aims to list by the end of the year. Hyundai Motor is reportedly targeting to raise about $2.5 billion (3.5 trillion KRW) through this IPO, which is estimated to be the second-largest IPO in Indian history after the Life Insurance Corporation of India. Vikas Pershad, Asia equity portfolio manager at M&G Investments, stated, "The listing of foreign companies like Hyundai Motor strengthens the Indian market," adding, "Companies that have reached a certain scale are increasingly likely to choose to list on the Indian stock market."

However, there are also pessimistic views regarding India's IPO boom. There are concerns that the record inflow of funds through IPOs could create a stock market bubble. Malcolm Dawson, emerging markets strategist at Global X, pointed out, "India's sustained economic growth and earnings per share increase are confirmed," but added, "(The Indian stock market) is quite expensive. One must look beyond multiples and prices to intrinsic value."

On the day, India's representative stock indices, the Sensex and Nifty 50, both rose by 0.27% and 0.33% respectively from the previous session, setting new all-time highs. Since the beginning of the year, they have risen by 6.3% and 7.6%, respectively.