New Delhi, Mar 28 (PTI) Indian companies raised USD 785 million, up 14 per cent year-on-year, through 39 IPOs in the first quarter this year, says a report.

The value was USD 686.26 million in the first quarter of last year from 37 initial public offers.

BSE’s main and SME markets saw 23 IPOs, which raised USD 739.7 million in Q1 2018, while NSE’s main and SME segments had 16 IPOs, which together raised USD 45 million, said the EY Global IPO Trends: 2018 Q1 report.

Industrials and consumer staples were the two most dominant industries for IPO activity in India with nine deals each followed by materials with seven deals.

With Indian markets performing well and the pipeline in the Middle East delivering a steady deal flow, prospects for the first half in Europe, Middle East, India and Africa (EMEIA) region are positive, the report added.

Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India said: The Indian IPO market is expected to remain robust in 2018 due to the resilient nature of the economy and strong domestic liquidity. The IPO pipeline is healthy with dozens of companies looking to go public later this year.” These companies, dominated by finance, defense and construction sectors, are expected to raise over USD 4 billion this year, he said.

The divestment of state-owned enterprises by the government is also likely to propel IPO activity in the country, he added.

Asia-Pacific markets saw a decline in deal activity in Q1 2018 with 157 IPOs a 39 per cent drop when compared with Q1 2017, and the lowest quarterly total since Q2 2016.

Total proceeds this quarter stood at USD 11.4 billion, down 26 per cent compared to Q1 2017 and the lowest level since Q1 2016. However, despite the drop in IPO activity, Asia-Pacific remained the world’s busiest region for new listings in Q1 2018, the report noted.

EMEIA markets raised USD 16 billion in Q1 2018 with 86 deals, placing the region second to Asia-Pacific in terms of deal numbers. Proceeds rose by 191 per cent on the back of mega deals.

The report further said that the global deal numbers decreased by 27 per cent while proceeds rose by 28 per cent, with 287 IPOs raising USD 42.8 billion, against Q1 2017.

Vish Dhingra, Partner, Financial Accounting Advisory Services (FAAS), EY India said, “Markets are expected to be more volatile through the year and hence window to time the market and to do successful listing is likely to be narrower this year.

This is published unedited from the PTI feed.