SEBI Chairman: India Leads Globally in IPO Numbers, Third by Value

India is the world’s leading market by number of IPOs and ranks third globally by IPO value, as stated by the SEBI Chairman. The update highlights recent IPO fundraising figures and indicators linked to India’s capital markets in the current financial year.

IPO and Capital Market: 

Dimension	Key Details
IPO definition	Initial Public Offering (IPO) comprises the process by which a private company sells its shares to public for the first time to raise equity capital, transforming it to a publicly traded company.
Market segment for IPO	Under the primary capital market which deals with issue of new securities.
IPO fundraising	311 IPOs raise 1.7 trillion rupees in the first nine months of the current financial year.
Market capitalisation-to-GDP ratio	India’s market capitalisation-to-GDP ratio rises from 69% (FY16) to over 130%.
Capital market meaning	Refers to facilities and institutional arrangements through which long-term funds, both debt and equity, are raised and invested, putting them into productive use.
Classification	Primary and Secondary Market; primary market deals with new securities/shares, and secondary market or stock market deals with purchase and sale of existing securities.
Participants	Financial institutions, banks, corporate entities, foreign investors and ordinary retail investors from public.
Instruments	Equity shares, debentures, bonds and preference shares.