Rise of IPOs in India: 2024 September's Top Record-Breaking Performance in India

With initial public offerings (IPOs), the 12 companies raised more than Rs 11,000 crore in total. Additionally, 39 small and medium-sized businesses (SMEs) raised a total of around Rs 1,542 crore, making it the busiest month for SME IPOs.

It's raining IPOs this year! Unabated during the first month of September 2024, IPOs saw an all-time rise by raising nearly Rs 12,000 crores. With 12 mainboard companies coming to the market and a historic crowd of SME IPOs, it has been the most active month for IPOs in a decade. Let us now venture into the numbers and what they state to investors.

In all, 12 companies have mopped up over Rs 11,000 crore from the primary markets in their respective IPOs in September. This is also the highest number of mainboard public issues to have come to the market so far this year and the fifth highest in the last two decades. Equally vibrant has been the SME segment, with as many as 39 SME firms raising around Rs 1,542 crore for themselves. Such galloping activity at IPOs points to a strong IPO market driven more by market confidence rather than investor interest.

Till now, 2024 has turned out to be a fabulous year for IPOs. Altogether, as many as 62 companies have raised an impressive amount of Rs 64,485 crore through public offers. In the SME segment, 204 firms have collectively raised Rs 6,959 crore. So this is one bit of excellent growth, actually showing that the Indian economy is very robust and investor appetite is at a peak in the prevailing market scenario.

The excitement doesn't seem to wane. Well over 40 draft documents have been filed by companies for their upcoming IPOs, and over half a dozen were filed on October 1 alone. Of course, the dominant players like Hyundai and Swiggy are still in the offing, so this momentum is likely to carry well into FY2025's latter half.

What is driving this IPO boom?

According to analysts, here are the reasons why this IPO boom:

1. Markets: Stock markets at a cyclical high or at an all-time high engenders investor optimism. 
2. Rich Liquidity: DII inflows have touched the decade-high of Rs 24,000 crore. Retail participation has never been this good.
3. Multi-bagger returns: Some IPOs have yielded returns that are in excess of 30-40 percent. That is enough to raise retail confidence and push investor confidence into the fray.

Year of Growth and Opportunity

The year 2024 has been hailed as a "year of growth and opportunity." When it comes to high-profile listings, good examples are Bajaj Housing Finance and Ola Electric-examples of robust liquidity and investor interest in a really remarkable trend.

That's a new benchmark for September 2024, so far as the IPO landscape in India is concerned. The enthusiasm for the IPOs is palpable. While there are opportunities for fairly substantial returns, however, investors must remain informed and cautious. Moving ahead with the rest of the year, we shall keep you posted about upcoming IPOs and market trends from Team IPO Ji. Let's navigate this vibrant and dynamic market together!