The surge in IPO activity was mainly driven by LTCG tax as firms rushed to list before the tax took effect on 1 April. The surge in IPO activity was mainly driven by the introduction of long-term capital gains tax, or LTCG tax, where the firms rushed to list before the tax took effect on 1 April. On the other hand, the first quarter of 2017 saw tepid IPO activity due to the setbacks from demonetization announced in November 2016. “The first quarter of 2018 was driven by LTCG tax. “My sense is there will be a bit of slowdown in the next couple of months, given the volatility in the secondary markets right now and also because of the introduction of LTCG tax.

Source: Mint April 12, 2018 23:37 UTC