Indian startups are getting an increasing taste for IPOs with some Indian exchanges outpacing China exchanges for IPO numbers.

2023 saw 209 IPOs – a 45% y-o-y rise – on Mumbai’s two stock exchanges the National Stock Exchange and the Bombay Stock Exchange, reports  EY (Ernst & Young).

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This contrasts with falls in IPOs of 33% down to 126 IPOs in Shenzhen, 36% down to 99 IPOs in Shanghai and 19% down to 61 IPOs in Hong Kong.

“India has shown signs of growth in recent years, due to its young population and confidence people have in its potential,” says EY’s Ringo Choi, “compared to a decade ago, India’s infrastructure has matured and improved significantly. I believe the India IPO market will gradually climb higher.” 

Small cap companies are driving the Indian IPO markets 

India’s Sensex stock index is up 10.3% this year, China’s  CSI300 has fallen 10.4% and Hong Kong’s Hang Seng is down 16.5%.