Summary:

India has become the worldwide IPO leader, accounting for 36% of all listings in Q3 2024, India has become the global IPO leader, accounting for 36% of all listings in Q3 2024, surpassing the United States' 13%. The country recorded its largest quarterly IPO listings in two decades, with 27 IPOs, a 29% increase over Q3 2023. The funds raised reached US$ 4.27 billion (Rs. 36,027 crore), representing a 142% increase from the previous year. Notable initial public offerings include Bajaj Housing Finance, Ola Electric Mobility, and First Cry.

While IPOs provide considerable rewards, investors must consider the tax consequences. Cleartax explains that IPO proceeds are taxed based on the holding period. Short-term capital gains (STCG) are taxed at 20% plus cess if shares are sold within a year. Long-term capital gains (LTCG) apply to shares held for more than a year; gains up to Rs. 1.25 lakh (US$ 1,481) are tax-free. Gains above this threshold are taxed at 12.5% plus cess. Capital losses can be offset accordingly.

Source: IBEF

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