The momentum of the IPO and fundraising will continue in 2022: Kotak Mahindra Capital


After a strong performance of digital tech companies in the primary market in 2021, the investment bank expects strong traction in the IPO pipeline for 2022 in key sectors such as digital technology, consumer , FIG, health, real estate and specialty chemicals.

The strong initial public offering (IPO) pipeline is expected to support capital flows even into 2022 – with the market awaiting the largest public offering from Life Insurance Corporation of India (LIC) in the coming year. About 65 Indian companies managed to raise more than Rs 1.35 lakh crore in 2021, the highest of the past three years combined, and the volumes and trend will be sustainable going forward into 2022, Kotak Mahindra Capital Company said on Tuesday. . After a strong performance of digital tech companies in the primary market in 2021, the investment bank expects strong traction in the IPO pipeline for 2022 in key sectors such as digital technology, consumer , FIG, health, real estate and specialty chemicals.

“The momentum of the IPO is expected to continue during CY22. With a instead $ 15 billion IPO pipeline deposited with Sebi and awaiting launch and $ 11 billion likely to be deposited in the near term, we can expect a good chunk of the IPO activity among mid and large caps with several high quality companies. seeks to list. Fundraising activity will continue to remain dynamic with companies listed in CY20 and CY21 which may return to raise funds, seek growth capital, deleverage to support growth and specific events such as acquisitions, as the world is returning to normal. Overall, 2022 would be good for the Indian fundraising market, ”said V Jayasankar, full-time director of Kotak Mahindra Capital Company.

In the area of ​​mergers and acquisitions, the investment bank expects a consolidation of market leaders in all product offerings and geographies in 2022 and there would be a resurgence of inbound strategic deals with foreign companies. search for opportunities in their main fields of activity.

Additionally, financial sponsors are likely to increase their participation amidst a large number of exit opportunities on the table. In calendar year 2021, M&A activity remained buoyant, jumping 4% to $ 118 billion through November from $ 114 billion in 2020. Incoming majority and minority transactions and domestic majority were the main drivers of the period.

Sourav Mallik, Deputy Managing Director of Kotak Investment Banking, said: “We have had an excellent year in terms of total number of M&A deals in 2021, thanks to a major digital, consumer technology and of the SaaS space. In 2022, we will see a consolidation of product offerings and geographic areas and a resumption of cross-border transactions. The overall outlook for 2022 remains positive and it will be another good year.

However, investors should remain cautious not to expect all IPOs to hit the mark, the company said. Globally, tightening US monetary policy, concerns about rising inflation, rising interest rates, and Omicron fears – especially in the West will be on the cards in 2022. L The impact on growth will depend on the policy actions of central banks, the company added.

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