PE-backed IPOs outperform non-PE issues; 2017 best in terms of proceeds

In 2017, Indian companies raised $11.6 billion from more than 38 IPOs (excluding SME IPOs) making it the best-ever year in terms of IPO proceeds.

Of this, IPOs by PE-backed companies in 2017 represented 55 per cent by volume and 38 per cent by value. 2017 was also a record year for PE investments and exits in India, one where aggregate PE investment equaled 1 per cent of the country’s GDP.

“From a performance perspective, on an average PE backed IPOs have outperformed non-PE backed IPOs, compared to their offer price across time periods. Both PE-backed and non-PE backed IPOs have performed better than the Index,” said, Vivek Soni, national leader, private equity services, EY India.


Performance of non-PE backed IPOs was more in line with index performance since the date of listing. As on 30 April 2018, 10 PE-backed IPOs are trading above 100 per cent of their offer price with an average return of 270 per cent.

Between 2013 and April 2018, highest return by a PE-backed IPO was 10x while that by a non-PE backed IPO was ~4x. ET brings you exclusive snippets of an EY analysis.