2021 may be India's year of IPO, unicorns setting markets on fire says RBI

The year 2021 could turn out to be India's year of IPO, the RBI said in an article. It added that domestic unicorns, through their public issues, are setting "domestic stock markets on fire and global investors in a frenzy".

The article has been authored by a team lead by RBI Deputy Governor Michael Debabrata Patra. The central bank said views expressed in the article are those of the authors and do not necessarily represent the views of the Reserve Bank.

Successful IPOs by new-age companies in the recent months are a reflection of bullishness about Indian technology, RBI said. The RBI article was referring to the IPO of Zomato which got oversubscribed 38 times.

"...Growth impulse is igniting financial markets. 2021 could well turn out to be India's year of the IPO. Debut offerings by Indian unicorns unlisted start-ups kicked off by a food delivery app's stellar IPO that was oversubscribed 38 times, have set domestic stock markets on fire and global investors in a frenzy," the central bank said in an article on the 'State of Economy'.

The article further said that “the $2.2 billion proposed listing by a payment and financial services app symbolises investor excitement surrounding India’s digitalisation “digital payment solutions; e-commerce; logistics”.