The hectic activity in the IPO market is likely to get even stronger, fueled by private equity funds sitting on a large portfolio of companies ripe for an exit, said Ajay Garg, executive director of investment bank Equirus Capital.
“We have never seen such constant activity in the primary market as in the past 15 to 18 months. And if you look at the 2007-2008 data, private equity has been pumping in around $ 25-30 billion every year, “Garg said in an interaction with Mint.
“Cumulatively, you are talking about investments in the last 13 years of almost 350 to 400 billion US dollars. Assuming these companies are all matured and looking at an exit perspective, you are sitting on trillions of dollars worth of good companies coming out, “Garg said.
The liquidity-driven dynamics in the equity capital markets are also flowing into other areas of dealmaking, leading to strong pipelines for investment banks.
“Each of our teams – infrastructure, financial services, fintech, technology, and healthcare – are all very active right now,” he added.
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