Ajay Garg, managing director of investment banking firm Equirus Capital, said the frenzied activity in the IPO market will be even stronger, driven by private equity funds sitting on a large portfolio of companies, ready to exit.
“We have never seen such consistent activity in the primary market as we have seen in the last 15 to 18 months. And if you look at the figures from 2007-08 till now, private equity has invested around $25-30 billion every year,” Garg said in a conversation with Mint.
“Cumulatively, you are talking about a period of the last 13 years, about $350-400 billion of investments. Assuming that all those companies have matured and they are looking at exits, then you are sitting on a trillion-dollar good companies that will hit the market,” Garg said.
Liquidity-driven momentum in equity capital markets is also entering other areas of bargaining, resulting in stronger pipelines for investment banks.
“Each of our teams – infrastructure, financial services, fintech, technology and healthcare – are all very active right now,” he said.
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