KPMG expects Indian digital companies to raise nearly $10 billion through initial public offerings in the next six months, as investors continue to pour money into the country’s technology sector.
“India is revealing a whole new avenue for growth with these digital firms for global asset managers,” said Srinivas Balasubramanian, Senior Partner and Head of Corporate Finance at KPMG India.
Balsubramanian added, in an interview with Bloomberg News Agency, that “a lot of money printed during the administration of former President Donald Trump always finds its way to stock markets worldwide, and India is one of the beneficiaries of that.”
After nearly two years of enduring the repercussions of the deadly coronavirus pandemic, several factors such as a strong return to life aided by a massive vaccination campaign, accommodative central bank policy and an expected 9.5% economic growth this year have all contributed to boosting India’s stock market.
Indian companies raised up to $10.8 billion in stock sales for the first time this year, according to data compiled by Bloomberg.
At this pace, 2021 may surpass the record set in 2017, which amounted to $11.8 billion.
Balsubramanian noted that market sentiment has improved due to the Chinese government’s regulatory crackdown on technology companies in the country.
In the past, when asset managers had investable money, 90% of those investments went to China due to its economic growth and consumption, but now 80% of it goes to India.
Balsubramanian sees old-economy companies driving in part M&A because they sell assets to get rid of debt, as well as digital and financial services companies seeking to consolidate using stocks as currency.
The article Indian companies are poised to raise $10 billion from the stock market was written in Al Borsa newspaper.