2024-12-11 14:59:12 :
As of December 9, the amount has exceeded the previous historical high. $According to Prime Database, Rs 1,18,723 crore was sold in IPOs in 2021. This is also about three times the share price $Data shows that IPOs of 57 companies have raised Rs 49,436 crore by 2023.
This figure only relates to main board IPOs and does not include IPOs of small and medium-sized enterprises.
The IPO rush has been driven by retail and institutional investor optimism about Indian stocks, which have delivered strong returns with the benchmark Sensex index up more than 16% in the past year. The growing demand for equity-related instruments has encouraged more companies, including new-age startups, to enter the primary market and take advantage of the favorable investment environment.
“There is a growing acceptance of equities as a primary vehicle for long-term wealth creation for individuals. There has been a significant increase in the number of new investors entering the market post Covid-19,” said Narendra Solanki, Head of Fundamental Research at Anand Rathi. “This change in mindset is due to the recognition that Stocks are driven by their potential to generate higher returns. “Compared to other long-term investment options.”
Young, tech-savvy investors are attracted by new-age companies such as Go Digit, Ola Electric, Blackbuck, Awfis, Ixigo and Unicommerce, which have listed this year. The absence of any direct risks in the IPO market, coupled with healthy retail and domestic institutional capital inflows, provides stability and a strong buffer for companies to go public.
Early investors in some companies have made huge returns by selling part of their shares in the tender offer in an initial public offering (IPO). BlackBuck’s early investors Quickroutes International, Tiger Global, Accel and Sands Capital received gains of approximately 2-5x $The IPO raised Rs 1,114.7 million. Sai Life Sciences investors TPG Asia and HBM Private Equity India expect to earn 4x to 13x this year $The IPO will close on December 13 and will raise Rs 3,000 crore.
Busy December
The average size of IPOs has more than doubled in the past year, which has also fueled interest in buying shares in the primary market. Kotak Investment Banking Managing Director and CEO S Ramesh said the average size has moved roughly to $Approximately 2000 Crores $With the emergence of large-scale IPOs of companies such as Bajaj Housing Finance, Hyundai Motor India, FirstCry and Swiggy, Rs 900 crore was raised.
Hyundai Motor India $The IPO size in October reached 278.7 billion rupees, which was the largest IPO in India to date, surpassing the state-run Life Insurance Company of India $The quote for 2022 is Rs 21,000 crore.
Even as the year-end approaches, markets remain optimistic. There are more IPOs set to hit the market this month, including high-ticket bids from Vishal Mega Mart, Sai Life Sciences, One MobiKwik Systems, Rekha Jhunjhunwala-backed Inventurus Knowledge Solutions and the International Gemological Institute, which will raise a total of `1,000 crore USD funds. $18,114 Crore shares.
In comparison, 11 companies including Doms Industries, India Shelter Financing Corp, Inox India and others have raised approx. $The data showed that it was 83.39 billion rupees in December last year.
Munish Aggarwal, managing director and head, said: “We are going through a pretty busy December and while it may seem a bit anomalous in the context of global markets, the Indian market has had a fairly active December issuance calendar for the past two years.” Equirus Equity Capital Markets.
While monthly IPO trends largely depend on the varying timelines of companies planning to go public, the December calendar is consistent with what has been offered over the past few months. In some cases, this trend may be driven by large IPOs, e.g. $Aggarwal said Vishal Mega Mart offered Rs 8,000 crore, adding that he expects it to cross approx. $220 billion rupees.
Experts point out that the surge in IPOs also reflects pent-up demand during the pandemic, when financials in FY21 and FY22 were partially affected by the coronavirus and companies decided to report more stable data before going public.
“Many corporates and private equity investors have been observing the continued growth momentum in the secondary market and the general welcome for IPOs, choosing to start discussions on IPOs in late FY23/24 and we are witnessing some of these decisions in today’s market Make a difference,” Agarwal said.
He expects the primary market to remain strong into 2025 as well, given that more than 75 companies have submitted IPO documents at various stages of approval.
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