When you set out to make a list of tech IPOs in India, you know that your job is going to be easy. Very easy. Out of a handful of initial public offerings last year in India, only JustDial was related to technology. Despite some cynicism and several misfires, the company’s Rs 900 cr offering in May was well received by the market.
That’s about it. There’s no list.
Justdial’s successful listing was a testimony to the fact that the market likes tech enabled companies. Several others like Bharatmatrimony, iYogi and QuickHeal are waiting in line for the right time for a public issue. MobMe, a small value added services company from Kerala, is biding its time to list on the newly founded Small & Medium Enterprise exchange.
Meanwhile, in the United States, over 220 companies went public in 2013. Again, only a handful of them were technology companies. In short, 2013 wasn’t really a breakout year for tech IPOs.
According to PwC, there were 29 technology IPOs larger than $40 mn globally in the first three quarters of 2013. Together, these companies raised nearly $4 bn from the markets. Each quarter saw about 10 deals and nearly a billion dollars in issue.
Some notables like Twitter made a splash later in the year. The site’s $1.8 bn IPO is likely to pave way for a cheerful 2014. If reports are to be believed, in 2014, we are likely to see tech companies such as Alibaba, Box, Square and Palantir going for an IPO in the US exchanges.
While there are many IPO ready companies in India, we aren’t likely to see too many of them going public because its an election year. Although we might see plenty of smaller exits and consolidation.