CHARTING THE IPO JOURNEY IN INDIA PAST, PRESENT, AND BEYOND

The world of finance and investment is shaped by a pivotal event—the Initial Public Offering (IPO).

It’s the moment when a company, often a promising startup or a well-established corporation, takes its first steps into the public realm, allowing investors to share its journey to success. From the historic voyage of the Dutch East India Company in 1602 to the present-day flurry of IPOs, the journey of Indian Initial Public Offerings highlights the nation’s growth. Let’s delve into the compelling history of IPOs in India to understand this concept better.

The history of Initial Public Offerings (IPOs) dates back to the year 1602 when the Dutch East India Company issued its first IPO. Indian capital market remained underdeveloped until the early 20th century. 1977 was a revolutionary year in the history of IPOs in India as  Reliance Industries Limited made history by initiating its IPO. Priced at par value, the offering had an issue size amounting to Rs. 2.82 crore. The 1990s was the time when India welcomed foreign investment and liberalised its economy. This period saw the emergence of several big and iconic IPOs, including the listing of Narayana Murthy’s Infosys in 1993. It became the first company to list on a US stock exchange.

The early 2000s witnessed a boom in IPO activity in India, with many companies going public. Over the years, the Indian IPO Market has continued to evolve, shining a spotlight on India’s growing entrepreneurial spirit. 

Needless to say, the Securities and Exchange Board of India (SEBI) plays a pivotal role here. The growing IPO market is how SEBI became the regulatory body of the Indian capital market. It is responsible for overseeing the entire IPO process and ensuring full transparency and fairness. To that end, SEBI has a set of guidelines and rules that every company must follow.

WHY A COMPANY LAUNCHES IPO?