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Published: October 14, 2024
Updated: October 14, 2024

September IPO Boom: 47 Companies Raise ₹16,000 Crore with Retail Investors Driving Momentum

India's IPO Market on a Bull Run

The Indian IPO market witnessed a significant surge in September 2024, with 47 companies collectively raising ₹16,152 crore. The momentum in the primary markets has been bolstered by the growing participation of retail investors, especially in the Small and Medium Enterprises (SME) segment. This surge has resulted in many IPOs being heavily oversubscribed, with a strong appetite for higher returns driving demand.

Mainboard vs. SME: Key Players and Performance

Of the 47 companies listed in September, 13 were mainboard IPOs, with Bajaj Housing Finance leading the pack by raising ₹6,560 crore. Premier Energies followed with an issue size of ₹2,830.4 crore. The remaining 34 companies belonged to the SME category, where retail participation was particularly notable. Nearly 61% of these companies are now trading above their issue prices, with standout performers like Travels & Rentals' SME IPO seeing a 283% gain, and Premier Energies achieving a 146% rise.

Retail Participation Soars to New Heights

Retail investors have played a pivotal role in the recent IPO surge, with many offerings seeing massive oversubscription rates. In the SME segment, it has become rare to find IPOs that aren’t fully subscribed in the retail category, with some IPOs attracting bids up to 2,000 times their offer size. This intense interest has been particularly evident during listing days, where stocks often post listing gains exceeding 100%.

SME IPOs Lead the Charge

Among the SME IPOs, WOL 3D was a standout, with its retail portion being oversubscribed by 488 times. Of the 34 SME companies that went public in September, 16 saw their retail portions oversubscribed by over 100 times, highlighting the fervor among retail investors. This growing trend is prompting more companies to consider the IPO route for raising capital, leveraging the favorable market conditions.

India’s IPO Market: A Threefold Growth in 2024

India’s IPO market has witnessed impressive growth this year. In the first eight months of 2024 alone, 227 companies went public, raising a combined USD 12.2 billion. This represents nearly a threefold increase compared to the USD 4.3 billion raised during the same period in 2023. India’s contribution to the Asia-Pacific (APAC) region has been particularly notable, helping APAC record 575 IPOs, raising USD 23.7 billion.

Future Listings to Watch

The momentum in India's IPO market is expected to continue, with several high-profile companies gearing up for their market debuts. Among the most anticipated listings are Hyundai Motor, Swiggy, and the National Stock Exchange (NSE), all of which are poised to attract significant investor interest. Hyundai's IPO is set to surpass the size of LIC's record ₹21,000 crore offering, signaling continued growth in the tech and startup space.

Reshaping India’s Economic Landscape

The ongoing IPO boom is not just a temporary trend but a transformative force in India’s financial markets. As more companies leverage IPOs to raise capital, this trend is contributing to the broader expansion of the Indian economy. With retail investors increasingly shifting their savings toward financial markets, the IPO space is poised for long-term growth.

A Market on the Rise:

India's IPO market, driven by robust retail participation and favorable market conditions, is set for sustained growth. While the excitement around IPOs continues to fuel strong demand, investors must exercise caution and perform due diligence to ensure they make informed investment decisions in an increasingly dynamic market.