After about 30 years in India, a new record is going to be made with an IPO. In fact, about 25 companies are going to debut in the stock market in this month. This means that after about 30 years, September has been the most busy month in terms of IPO. According to data from Bloomberg compiled by Primedtabase, IPO was last seen in 1997 when 28 companies entered the market. These companies are expected to collectively raise more than Rs 12,000 crore. The flood of IPO is not limited to the main market only, but also extends to the small SME market. This week alone, 28 IPOs came on the market, and 18 issues are going to open in the first two days of the next week.
The demand for these issues is mixed. Although most of the IPOs are managed to enter the market, the subscription number remains moderate, which is probably due to the huge number of IPOs in the market due to generate crash cries. At the end of the year, the crowd of IPO is not new. Last year too, companies had ventured into public markets at the end of the year, although the number was less seen. Companies usually aim to meet the work of raising funds before the quarter ends, as the draft prospectus will be required to update with another round of audited income to avoid deals by October.
Foreign investors are investing money in IPO
Analysts say that strong business Outlook, strong domestic liquidity, rapidly growing stock markets and attractive valuation combinations have created an attractive position for companies to be public. According to DAM Capital CEO Dharmesh Mehta, foreign investors have also shown more interest in Indian offers, which has increased confidence. Despite being a pure seller of about Rs 1.8 lakh crore in the secondary market this year, foreign institutional investors have invested around Rs 42,900 crore ($ 4.8 billion) in IPO and qualified institutional placements. Analysts say that this difference underlines how foreign institutional investors are selectively betting on new equity stocks instead of broker market. The boom in IPO is seen despite weak performance in the secondary market, where this year the Sensex and Nifty have barely jumped.
68,000 crores have been raised from the market
India is expected to be the world’s most busy IPO market. In 2024, companies raised more than Rs 1.5 lakh crore, and in 2025, this pace will continue to a large extent, by August 68,000 crore has been raised. Statistics compiled by the Prime Database showed that the issue of Rs 1.14 lakh crore has already received regulatory approval, while other issues worth Rs 1.64 lakh crore are pending. Regulabry changes have also contributed to this. SEBI is using AI-operated document scanning to speed up approval, reduce the deadline and to enable issuance to use market windows more efficiently.
Many big names in the queue
In the coming days, the listing of many big companies is likely to be in the stock market. Which includes many companies like Tata Capital, LG Electronics India, NSE, Hero Fincorp, and Grow, Phonepe, Misho, Shadowax and Vwork India.