Due to the pace of economic growth, favorable market conditions and improvement in the regulatory framework, the IPO market has seen a lot of growth this year i.e. in 2024. During the year, companies in the mainboard segment have raised a record amount of Rs 1.6 lakh crore through IPO. It is believed that next year will also be very good for IPO.
This extraordinary year for IPOs not only reflects the confidence of companies launching public issues, but also reflects the confidence of investors. Apart from earning profits on the day of listing, investors have also expressed confidence in the capabilities of the companies for the long term.
Average size of IPO increased to ₹1700 crore
This year, Hyundai Motor India’s IPO worth Rs 27,870 crore came. This is the biggest IPO so far in the history of the country. During the year, all types of companies, big, medium and small, raised money through IPO. The average size of IPO will increase to Rs 1,700 crore in 2024. In 2023 it was Rs 867 crore. At least 15 IPOs have come in the month of December alone.
V Prashant Rao, Director and Head – ECM, Investment Banking, Anand Rathi Advisors, said, “Increasing participation of retail investors and active participation of foreign portfolio investors (FPIs), increase in private capex, and government focus on infrastructure and key sectors. Since then, the activities of collectively raising money through IPO have gained momentum.
SME IPO raised Rs 8700 crore
According to data available with the exchange, there were 90 mainboard IPOs in 2024 through which a total of Rs 1.6 lakh crore was raised. It also includes 8 IPOs ending on December 23-24. Apart from this, the Rs 500 crore IPO of Unimech Aerospace and Manufacturing is scheduled to open on December 23. Last year i.e. in 2023, 57 companies of the mainboard segment had raised an amount of Rs 49,436 crore from IPO. In 2021, 63 companies had raised Rs 1.2 lakh crore from IPO. This was the highest figure in two decades.
According to data from PrimeDatabase.com, IPOs of small and medium companies (SME) have also seen a lot of growth this year. During the year, 238 small and medium companies raised Rs 8,700 crore by issuing shares. An amount of Rs 4,686 crore was raised through SME IPO in 2023.
Indo Farm Equipment IPO: Tractor and crane company is bringing the last issue of the year, 86 lakh new shares will be issued.
The biggest IPO of the year
This year, after the IPO of Hyundai Motor India, the second largest IPO was that of Swiggy, whose size was Rs 11,327 crore. This was followed by the IPOs of NTPC Green Energy (Rs 10,000 crore), Bajaj Housing Finance (Rs 6,560 crore) and Ola Electric Mobility (Rs 6,145 crore). In contrast, the IPO size of Vibhor Steel Tubes was the smallest at Rs 72 crore.
Interestingly, the IPO subscription ratio has also been exceptionally high this year. Vibhor Steel Tubes was subscribed 320 times, while other IPOs like KRN Heat Exchanger and Refrigeration, Manaba Finance and Gala Precision Engineering were subscribed more than 200 times. Additionally, IPOs of companies like One Mobikwik Systems, Unicommerce e-Solutions, Diffusion Engineers, BLS e-Services and Exicom Tele-Systems were subscribed more than 100 times.
IPOs This Week: Opportunity to invest money in 3 new IPOs in the week starting from December 23, 8 companies will be listed.
IPO figures will go further in 2025
Market analysts believe that there will be a rise in the activities of raising money through IPO in the new year also. The number of IPOs in 2025 may exceed this year’s figure. Munish Agarwal, managing director and head of equity capital markets, Equirus, said, “75 IPO documents are currently in various stages of approval. On this basis, we believe that in 2025, companies can raise up to Rs 2.5 lakh crore through IPO.
The companies whose IPOs are to come next year include the proposed Rs 12,500 crore public issue of HDB Financial Services. Apart from this, IPO of Rs 15,000 crore of LG Electronics India and IPO of Rs 9,950 crore of Hexaware Technologies is also proposed.
