Insights from a decade of Indian Mainboard IPOs | Part 1: Issue Sizes, Timelines, Costs and Use of Proceeds
India’s public markets have seen significant growth in listing over the years, with forecasts estimating 98 IPOs by the end of 2024. As more and more of our founders prepare to enter the dynamic world of public markets, we often find them inquiring about crucial aspects of IPOs, such as costs, timelines, and the scale of the process. To support this journey, we analysed a decade of Mainboard IPOs on Indian stock exchanges from January 2015 to August 2024. We’re pleased to share our findings in a two-part series titled “Insights from a Decade of Indian Mainboard IPOs”.
Resource
Proceeds Allocation: A significant portion of IPO proceeds has been directed towards Offer for Sale (OFS), enhancing liquidity for both investors and founders.
IPO Expenses: Typically, IPO costs range from 3% to 8% of the total offer size, with lower percentages often seen as offer sizes increase.
Filing Timeline: On average, companies take ~200 days to file for an IPO. This timeline can be influenced by the size of the issue and the number of Book Running Lead Managers (BRLMs) involved.
Utilization of Funds: Companies with larger offers often aim to use the funds for acquisitions and debt repayment, while smaller firms typically focus on working capital and capital investments for organic growth.
We invite you to read the complete report here. We welcome any thoughts/questions.
Authors
Aria Pradhan
Aria focuses on growth-stage investments at Blume. She comes with Investment Banking experience from DC Advisory’s technology and software M&A group.Aria graduated from Brandeis University, where she received a…- Current Section
- Senior Analyst
Vikram Gawande
Vikram takes care of growth investments at Blume. He has 16+ years of experience across Technology, Consumer Internet and Venture Investments.He has spent more than a decade in the startup world, both as an entrepreneur and an…- Current Section
- Director, Growth Investment