The year 2024 has proven to be a standout period for initial public offerings (IPOs) in India, with a surge of companies tapping into the primary market to raise capital. This wave of activity has been driven by favorable market conditions, increased investor confidence, and a strong appetite for new offerings.
Following the COVID-19 pandemic, many companies had halted their fundraising plans. However, as market conditions improved, these efforts resumed in 2023, driven by robust participation from Indian retail investors. This influx of capital has fueled a significant increase in IPO activity.
According to Trendlyne data, 209 companies, including SMEs and mainboard firms, have raised funds from the capital markets in the first eight months of 2024. If this trend continues, the number of IPOs for the year is expected to surpass the 238 recorded in 2023.
SMEs have been at the forefront of this fundraising surge, attracting retail investors with lower IPO prices and the potential for high returns. Mainboard IPOs have also garnered considerable interest, with notable companies like OLA Electric and FirstCry successfully raising capital.
The strong momentum in the IPO market is expected to continue, with tech startups such as Swiggy, PayU, and MobiKwik preparing to launch their own IPOs in the coming months.
Foreign portfolio investors (FPIs) have also been active in the IPO market, investing $6.4 billion (₹53,568 crore) in Indian equities through IPOs and qualified institutional placements (QIPs) as of August 19. This represents the highest investment in four years. Despite being net sellers in the secondary market, FPIs have been net buyers of $1.9 billion (₹15,560 crore) in 2024, with strong interest in the primary market continuing for 11 consecutive months.
Among the 47 mainboard IPOs listed this year, 41 are currently trading above their issue prices. Notably, five stocks are trading between 100 percent and 270 percent above their IPO prices. Jyoti CNC Automation stands out with its stock surging 293 percent from its issue price, currently trading at ₹1,222, a 270 percent increase. Other notable performers include Exicom Tele-Systems, Platinum Industries, Awfis Space Solutions, and Unicommerce eSolutions, all showing significant gains since their public debut.
As the Indian IPO market continues to thrive, the outlook remains positive with expectations of further expansion and opportunities for investors.
