Indian IPO market: Bank of America expects Indian IPO market to pick up within six months

The Bank of America Corp. expects IPOs in India to regain recent momentum as early as the first quarter of next year, helped by the underlying strength of the market.

“I think IPOs have taken a breather, but it will probably take three to six months before they come back,” Debasish Purohit, co-head of Indian investment banking at Bank of America, said in an interview with Bloomberg Television on Wednesday .

Some of last year’s IPO activity has more recently given way to secondary stock sales, which are faster and allow holders to monetize their shares, Purohit said.

India’s equity capital market activity has fallen about 40% this year, he said, beating a 70% plunge across Asia.

Purohit expects M&A activity to remain strong in India, supported by consolidation in consumer-facing industries such as financial services and consumer internet businesses.

“A lot of M&A activity in India will be inbound because there are sectors in India that are net importers of capital,” said Purohit, who was appointed co-head of the unit in June.

Most of the incoming deals will be seen in the energy transition, infrastructure, food and beverage and healthcare sectors, he said, especially if global pharma tends to diversify away from the Chinese supply chain or make significant investments in India.

–With support from Haslinda Amin and Rishaad Salamat. Indian IPO market: Bank of America expects Indian IPO market to pick up within six months

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