As many as 76 Indian corporates raised a cumulative amount of ₹61,915 crore through main board public issues or initial public offers (IPOs) in the financial year 2023-24, which was 19% higher than the ₹52,116 crore mobilised by 37 IPOs in 2022-23.
The largest IPO of FY24 was Mankind Pharma (₹4,326 crore), followed by Tata Technologies (₹3,043 crore) and JSW Infrastructure (₹2,800 crore). At the other end, the smallest IPO was from Plaza Wires raising just ₹71 crore followed by Vibhor Steel (₹72 crore).
The average deal size reduced significantly to ₹815 crore in comparison to ₹1,409 crore in 2022-23 and ₹2,105 crore in 2021-22.
Interestingly, according to data from primedatabase.com, a primary capital market database, if the mega IPO of LIC, which came in 2022-23, is excluded then the total fund mobilisation would have increased by 58% in FY24 when compared to the previous fiscal.
According to Pranav Haldea, Managing Director, PRIME Database Group, while companies from multiple sectors tapped the IPO market in 2023-24, one key sector which had a limited presence was BFSI with just ₹9,655 crore (or 18%) being raised by companies from this sector (in comparison to 51% in 2022-23).
New-age technology companies too were few at just three -- Yatra, Mamaearth and Zaggle.
Meanwhile, the overall response from the public was strong. Of the 75 IPOs for which response data is available, 54 IPOs received a mega response of more than 10 times (of which 22 IPOs more than 50 times) while 11 IPOs were oversubscribed by more than three times. The balance 10 IPOs were oversubscribed between one to three times.
In comparison to 2022-23, the response of retail investors also increased tremendously. The average number of applications from retail increased to 13.17 lakh, in comparison to 5.57 lakh in 2022-23.
The highest number of applications from retail were received by Tata Technologies (52.11 lakh) followed by DOMS Industries (41.30 lakh) and INOX India (37.34 lakh).
Average listing gain (based on closing price on listing date) increased to 29%, in comparison to 9% in 2022-23. Of the 75 IPOs, 48 gave a return of over 10%. Vibhor Steel gave a strong return of 193% followed BLS E-Services (175%) and Tata Technologies (163%).
Further, 51 of the 75 IPOs are trading above the issue price (closing price of March 21, 2024) with an average return of 65%.
On a different note, activity in the SME segment saw a huge increase in 2023-24 with 200 SME IPOs collecting a total of ₹5,838 crore, which was 161% higher than ₹2,235 crore from 125 IPOs in 2022-23. The largest SME IPO was of KP Green Engineering (₹180 crore).
In terms of the outlook for the current calendar year, the pipeline continues to remain strong. As many as 19 companies proposing to raise nearly ₹25,000 crore are presently holding Sebi approval while another 37 companies looking to raise about ₹45,000 crore are awaiting the regulatory approval.
According to Haldea, despite the upcoming general elections, the next couple of months should still see a few IPOs being launched.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
