KPMG expects digital companies in India to raise about $ 10 billion through an initial public offering over the next six months as investors continue to invest in the country’s tech sector.
“India is opening up a whole new area of growth with these digital companies for hungry global asset managers,” Srinivas Balasubramanian, Senior Partner and Head of Corporate Finance at KPMG India, said in an interview with Rishaad Salamat and Haslinde Amin. of money printed during the Donald Trump administration invariably ends up in stock markets around the world, and India is one of the beneficiaries. “
After nearly two years of battling the coronavirus pandemic, a sustained return to life fueled by mass vaccinations, adaptive central bank policies and an expected 9.5% economic growth this year are also fueling a rally in India’s stock market.
Indian companies raised $ 10.8 billion from share sales for the first time this year, according to data compiled by Bloomberg. At this rate, 2021 could well surpass the record $ 11.8 billion raised in 2017.
Balasubramanian said market sentiment has been boosted by the Chinese government’s regulatory measures against its tech companies. In the past, when asset managers had money to invest, “90% of it went to China due to its growth and consumption, but now 80% goes to India,” he said.
Senior Partner at KPMG believes that old economy companies are partly driving M&A as they sell assets to reduce debt, and digital and financial services companies seeking consolidation using stocks as currency.
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