India has become the second largest country in the world after America in terms of IPOs. China is at number three in this list. Japan and Germany are not even visible nearby. It means clearly that there are names of IPOs in India in the year 2024. If we talk about India only, then in the current year so far Indian companies have raised Rs 1.19 lakh crore through IPO. Which has become a record. Earlier this record was set in the year 2021. Whereas the companies had raised Rs 1.18 lakh crore. Whereas America is at number one. Where companies have raised more than $26 billion through IPO. China is at the third position, where companies have not been able to raise even $11 billion from the stock market. Let us also tell you what kind of report has come out?
India’s IPO market made a record
India’s primary market has set a new record with the completion of Swiggy’s Rs 11,300 crore public issue and ACME Solar’s Rs 2,900 crore OFS on Friday. The amount raised from IPOs so far this year has crossed Rs 1.19 lakh crore i.e. $14 billion, surpassing the previous record of Rs 1.18 lakh crore set in 2021. We may see further increase in this figure. Many IPOs are in the pipeline till the end of December. In such a situation, the figure of $14 billion may increase further.
India ranks second in the world
So far this year, India’s IPO market has been seen second only to America. This year, companies in America, the world’s largest economy, have raised $26.3 billion from IPOs. According to Refinitiv data, China is in third place with $10.7 billion. Bankers said high valuations in the secondary market and excess liquidity with institutional investors have created strong demand for public issues this year.
V Jaishankar, Head of Equity Capital Markets, Kotak Investment Banking, said that the flow of funds from domestic investors into the primary markets is strong, while foreign investors have been aggressive in the primary market despite being sellers in the secondary market. Despite volatility in the secondary market, large IPOs like Swiggy received strong demand from quality anchor investors, highlighting the significant appetite for IPOs in India.
How is the response to IPO?
Three IPOs like Swiggy, ACME Solar and Sagility India have raised Rs 16,334 crore so far this month. While the Swiggy IPO was subscribed 3.59 times, the issue of ACME Solar was subscribed 2.74 times. While FPIs have sold shares worth Rs 96,946 crore so far this year, they have invested Rs 87,073 crore in the primary market. Last month, Hyundai Motor had raised a record Rs 27,870 crore through an IPO, which was oversubscribed 2.37 times.
Which were the biggest IPOs?
Hyundai’s IPO broke the previous record of Life Insurance Corporation of India’s IPO of Rs 21,008 crore in May 2022. Apart from Hyundai and Swiggy, some of the big IPOs this year include Bajaj Housing, which raised Rs 6,560 crore, followed by Ola Electric with Rs 6,146 crore and Shapoorji Pallonji Company Afcons Infra with Rs 5,430 crore.
This year, about 20 companies have raised funds between Rs 1,000 crore and Rs 4,300 crore. Investment banker Ravi Sardana said that most of the IPOs listed this year have given strong returns, which has encouraged investors to invest more money in the primary market. Given the success of recent public issues and their favorable returns, the momentum in IPOs is expected to continue.
These companies gave double returns
Out of the 68 companies whose IPOs came this year, shares of 49 are currently trading above their offer price, while 19 are below that level. Prices of about a dozen, including Jyoti CNC, Platinum Industries, KRN Heat, Axicom Tele-Systems, Gala Precision Engineering, Bharti Hexacom, Premier Energies, Vari Energies, Epack Durable and Office Space Solutions, have more than doubled since listing.
With the number of demat accounts increasing every month, new categories of retail and HNIs are coming into the IPO market. The total number of demat accounts in India increased to 179 million in October 2024, representing an increase of 35 million accounts over the calendar year and contributing to an average monthly growth of 3.5 million accounts.
