Winning Bizness Desk
Mumbai – The primary market witnessed a strong surge in August, setting a two-year record for funds raised through Initial Public Offerings (IPOs). In total, 10 companies raised Rs 17,047 crore during the month, marking the highest amount collected in a single month since May 2022. According to stock exchange data, 57% of this amount—around Rs 9,715 crore—came from fresh issues, while Rs 7,333 crore was garnered through offers for sale (OFS). The IPO momentum was further bolstered by the submission of draft prospectuses by 25 companies to the Securities and Exchange Board of India (SEBI), with a total of 92 firms filing drafts this year. This is the highest submission rate since 2021, when 120 companies had filed by the same period. From January to August 2023, 56 companies have collectively raised Rs 65,000 crore through IPOs, far surpassing the Rs 15,051 crore raised by just 20 companies during the same period last year. August's figures alone exceeded last year’s eight-month total, demonstrating renewed investor confidence.
A booming stock market
Analysts credit strong corporate earnings, a booming stock market, and the broader economic recovery for driving this IPO surge. Notably, companies like Ola, which raised Rs 6,145 crore, and Brainbees Solutions, which secured Rs 4,193 crore, have led the market activity this year. Upcoming big names like Bajaj Finance are also slated to enter the market next week, aiming to raise Rs 6,560 crore. Several of this year’s IPOs were fully subscribed on their first day, with many listings offering investors premium returns ranging from 20% to 100%. This strong IPO performance signals a thriving investment environment in India, setting the stage for continued growth in the months ahead.
56 companies already having raised about ₹65,000 crore
As of September 2024, there is significant activity in India's IPO market, with a surge in the number of companies looking to go public. So far this year, 92 companies have submitted draft prospectuses to SEBI, seeking approval to launch Initial Public Offerings (IPOs). This includes a variety of firms across sectors aiming to raise capital, reflecting a strong investor interest driven by robust economic conditions and a positive stock market outlook. The number of pending IPOs represents the strong pipeline for the coming months, and the market is expected to continue its momentum, especially with companies across industries like finance, technology, and retail planning to raise funds. Some prominent upcoming listings include larger corporations such as Bajaj Finance and Ola, each planning to raise significant capital. This uptick follows a generally positive year, with around 56 companies already having raised about ₹65,000 crore through IPOs since January.
