Winning Bizness Desk

Mumbai. In the first eight months of 2024, companies raised an impressive ₹62,000 crore through 57 Initial Public Offerings (IPOs), surpassing last year's total of ₹49,400 crore from the same number of IPOs. The surge in IPO activity highlights a robust primary market, offering investors significant returns. August 2024 has been the standout month for IPOs, with 10 companies collectively raising ₹17,000 crore. This makes it the most successful month in terms of funds raised. In September, up until the 12th, seven IPOs were launched, bringing in an additional ₹9,205 crore. The momentum in the IPO market shows no signs of slowing, with several high-profile listings expected in the coming months.

High Returns: 5 IPOs Deliver Over 100%, 15 Offer 50%-90% Gains

Of the IPOs launched this year, five have given more than 100% returns to investors, demonstrating the strong performance of certain companies in the stock market. Additionally, 15 IPOs delivered returns between 50% and 90%, showcasing the potential for investors to make substantial gains. Despite the overall positive trend, seven IPOs have underperformed, providing returns below their issue price. However, no IPO has reported losses exceeding 50% from its listing price, indicating a relatively stable market environment.

Bajaj Housing Finance: The Year’s Largest IPO

Bajaj Housing Finance's IPO emerged as the biggest in 2024 in terms of bid value, receiving bids worth over ₹3 lakh crore. The IPO was oversubscribed by 67 times, reflecting strong investor interest. Following Bajaj Housing Finance, other major IPOs this year include Ola Electric and Bharti Hexacom. In comparison, the largest IPOs in recent years were Paytm’s ₹18,000 crore IPO in 2021 and Life Insurance Corporation (LIC)’s ₹21,008 crore IPO in 2022, both of which set benchmarks for fundraising in India’s primary market..

Top Performers: Jyoti CNC, Unicommerce, and Premier Energies

This year, 45 out of 57 IPOs have provided positive returns to shareholders. Jyoti CNC is the standout performer, with its shares tripling in value compared to the IPO price. Recently listed companies like Unicommerce and Premier Energies also saw strong gains shortly after their debut, contributing to the overall positive market sentiment. While most IPOs delivered positive results, a few, such as Capital Small Finance Bank and Popular Vehicle, have given negative returns so far. Despite this, none of the IPOs have experienced a sharp decline of 50% or more from their listing price, providing some reassurance to investors.

What is an IPO?

An Initial Public Offering (IPO) occurs when a company offers its shares to the public for the first time, often to raise capital for expansion. Through an IPO, companies can raise funds by selling shares to investors, avoiding the need for loans and attracting long-term shareholders.