By way of the quantum of funds raised, this yr’s tally is the second-best ever after 2022 when 16 companies raised Rs 40,311 crore, led by the biggest-ever IPO of state-owned Life Insurance coverage Company of India (LIC).

If one excludes the quantity raised by the LIC IPO, then this yr is the most effective for the IPO market by way of the variety of points in addition to the quantity raised. In comparison with the primary half of final yr, the funding has jumped 4 instances, underpinned by sturdy liquidity help from each international and home buyers. Additionally, supportive valuations from the secondary market—which give cues for the first market—have inspired new issuers to go public.

Notably, the document deal-making this yr is a pointy deviation from previous election years, when the IPO markets turned moribund. Within the first half of 2019, solely eight companies had raised Rs 5,509 crore. In 2014, just one problem got here through the first six months, and in 2009, two points raised Rs 302 crore.

“There was by no means confusion about regime continuity. Whereas the markets had been gyrating just a little bit, there was no threat to the steadiness on the centre and coverage continuity, which gave the issuers the consolation of not wanting to attend for the result as a result of the result appeared imminent,” stated Chirag Negandhi, managing director at JM Monetary.

Negandhi stated there may be sufficient liquidity within the system from home establishments, household places of work, and high-net-worth people (HNI) to help good points.

To date this yr, home mutual funds (MFs) have pumped greater than Rs 1.85 trillion into home shares.

“And even when the international buyers is likely to be web sellers at sure instances, they don’t seem to be brief on India. They lap up points in the event that they see worth,” stated Negandhi.

Among the many IPOs, Bharti Hexacom raised the most important quantity, Rs 4,275 crore, adopted by Aadhar Housing Finance, which raised Rs 3,000 crore. The smallest IPO was that of Vibhor Metal Cubes, which raised Rs 72 crore.

The common deal measurement was lowered barely from Rs 896 crore within the first half of 2023 to Rs 859 crore this yr. To date in 2024, the Sensex has gained 6.8 per cent and the Nifty by 8.1 per cent. The broader Nifty Midcap 100 rallied 20 per cent and the Nifty Smallcap 100 by 20.5 per cent. The newly listed companies have additionally handsomely rewarded buyers. The BSE IPO index, a gauge monitoring newly listed companies, has risen 21.8 per cent this yr.

The monetary sector dominated with Rs 7,879 crore, which accounted for a fourth of the overall capital raised.

Going ahead, bankers stated the problems would possibly pause earlier than the Union Price range, however the pipeline stays equally sturdy for the remaining six months, with some marquee names similar to Swiggy, Hyundai India, and Ola trying to hit the market.

First Printed: Jun 24 2024 | 4:56 PM IST