The market for initial public offerings in India is turning into a feeding frenzy. The amount of money raised in IPOs this year has reached $8.8 billion, already surpassing the totals of the past three years even though it’s only August.
At the current pace, 2021 will exceed the all-time record of $11.8 billion. Founders, bankers, lawyers and advisers are racing to cash in on fervent demand for fresh public offerings.
The catalyst, in a word, is Zomato Ltd. The food-delivery startup went public in July, and — despite deep losses and mediocre prospects for profitability — shares have soared more than 70%. That has fueled the idea that similarly profit-challenged startups could find a strong reception from investors.