crossorigin="anonymous"> IPO boom: Record 1.6 lakh crore raised in 2024 New Year to see more heights – Times of India – Subrang Safar: Your Journey Through Colors, Fashion, and Lifestyle

IPO boom: Record 1.6 lakh crore raised in 2024 New Year to see more heights – Times of India


New Delhi: IPO fundraising in India hit another milestone as economic growth, favorable market conditions and improved regulatory framework helped companies raise a record Rs 1.6 lakh crore in 2024. , while the pipeline for next year holds great promise. This exceptional year reflected not only the confidence of issuers, but also the eagerness of investors to buy back companies with strong potential for long-term growth or listing-day gains.
This year was a historic one for Hyundai Motor India. IPOThe largest in the country’s history, it collected Rs 27,870 crore.
Companies of various market capitalizations — large, mid and small — tapped the IPO route in 2024, with the average issue size increasing significantly from Rs 867 crore in 2023 to Rs 1,700 crore in 2024. went
The extraordinary dynamism of the IPO market was evident, with December alone seeing at least 15 launches.
“Growing retail participation, strong domestic traffic and active participation of FPIs (although they have been net sellers in the secondary market), increased private investment and the government’s strategic focus on infrastructure and key sectors have collectively led to fund-raising. has laid a strong foundation for speed in India”. V. Prashant RaoDirector and Head – ECM, Investment Banking at Anand Rathi Advisors said.
Fundraising pace is expected to pick up further in the new year, possibly surpassing 2024’s record figures, market analysts said.
“Based on 75 IPO documents, which are at various stages of approval/marketing and deal pipelines, we expect issuance activity to exceed Rs 2.5 lakh crore in 2025,” Manish Agarwal, Managing Director said. and Head of Equity Capital Markets at Aquarius, said.
Big offerings in the IPO pipeline for next year include HDB Financial Services’ proposed Rs 12,500 crore issue, LG Electronics India’s Rs 15,000 crore public float, and Hexaware Technologies’ Rs 9,950 crore offering.
According to data available with the exchanges, 90 initial public issues were launched in 2024, raising a total of Rs 1.6 lakh crore. This includes eight IPOs ending on December 23-24. Apart from this, the Rs 500 crore IPO of UniMac Aerospace and Manufacturing is scheduled to open on December 23.
Additionally, Vodafone Idea raised Rs 18,000 crore through a follow-on public offer (FPO). About Rs 1.6 lakh crore was raised in 2024 compared to Rs 49,436 crore raised by 57 firms through IPOs in 2023.
In comparison, 63 companies raised Rs 1.2 lakh crore in 2021, marking the best IPO year in two decades, due to high liquidity, increased participation from retail investors, and continued enthusiasm in the primary market. And because of excitement.
The recovery in activity also extended to the SME segment, where a record 238 small and medium enterprises raised Rs 8,700 crore in 2023, according to data provided by primedatabase.com. 4,686 crore almost doubled from Rs.
This development reflects the growing interest in SME public offerings, although it comes with higher risks for retail investors.
In response, Sebi decided to introduce a stricter regulatory framework, including profitability requirements, a cap on the offer for sale (OFS) component and a “fear” for non-institutional investors (NIIs) to protect small investors. off lot” system.
Experts attributed this year’s strong IPO activity to a stable economic environment, policy continuity at the central government level and broad-based economic growth.
“The stable economic environment, coupled with policy continuity at the central government level, has encouraged companies and investors to raise funds. Foreign portfolio investors have also been big buyers, especially large in IPOs,” said. Pranjal SrivastavaPartner Investment Banking at Centrum Capital.
Several factors, including private equity exits, sponsor-driven sales, and changes in corporate funding strategies, have also driven IPO activity.
“Manufacturing recovery and increased private capital spending are key contributors as companies look to fund expansion and modernization. Many businesses are moving from debt-heavy models to equity, with stronger balance sheets and lower are focusing on diversifying their sources of funding by ensuring leverage,” said Neha AgarwalMD and Head, Equity Capital Markets at JM Financial Institutional Securities.
Among the biggest mainboard IPOs of the year, Hyundai Motor India led the pack, raising Rs 27,870 crore, followed by Swiggy (Rs. 11,327 crore), NTPC Green Energy (Rs. 10,000 crore), Bajaj Housing Finance (Rs. 6,560 crore), and Ola Electric Mobility (Rs. 6,145 crore).
In contrast, Vibhor Steel Tubes launched the smallest IPO, raising just Rs 72 crore, showing the diversity of companies accessing the capital markets.
For companies, going public provides critical funds for expansion, working capital, and debt repayment while increasing visibility and attracting new business opportunities. IPOs also serve as an exit strategy for long-term investors.
Interestingly, the IPO subscription ratio has been unusually high this year. Vibhor Steel Tubes saw an impressive subscription of 320 times, while other offerings such as KRN Heat Exchanger and Refrigeration, Manba Finance, and Gala Precision Engineering were subscribed over 200 times each.
Additionally, the IPOs of companies such as One Mobikwik Systems, Unicommerce eSolutions, Diffusion Engineers, BLS E-Services, and Exicom Tele-Systems were oversubscribed more than 100 times.
This strong demand led to substantial gains in listings, with more than 60 companies delivering positive returns on their first day.
Vibhor Steel Tubes, BLS E-Services, Bajaj Housing Finance and KRN Heat Exchanger posted gains of over 100 percent, reflecting strong investor demand.
Meanwhile, India’s equity markets also saw record-breaking performances, with the NSE Nifty 50 hitting an all-time high of 26,216 points on September 27 and the BSE Sensex hitting 85,836 points on September 26, supported by the country’s strong economy. From the growth outlook.



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