The IPO landscape for 2024 remains robust, with 27 companies having secured SEBI approval to raise Rs 28,500 crore, while an additional 36 companies await SEBI's nod, aiming to raise around Rs 40,500 crore, as per Prime Database.
Pranav Haldea, Managing Director of PRIME Database Group, anticipates a flurry of IPO launches in the coming months before a potential slowdown due to the upcoming general elections.
In 2023, 87 companies submitted their offer documents to SEBI for approval, a slight dip from the 89 in 2022. However, 2023 also witnessed 40 companies, aiming to raise nearly Rs 70,000 crore, letting their approval lapse. Additionally, three companies looking to raise Rs 3,550 crore withdrew their offer documents, and SEBI returned the offer documents of six companies aiming for Rs 10,800 crore.
Haldea notes that the IPO market's vigor was fueled by robust listing performances. The average listing gain, based on closing prices on the listing date, surged to 29 percent, a significant uptick from 11 percent in 2022.
Out of the 57 IPOs, 40 delivered returns exceeding 10 percent. Notable performers include Tata Technologies, which boasted a remarkable return of 163 percent, followed by Ideaforge (93 percent) and Utkarsh Small Finance Bank (92 percent). As of January 1, 2024, 53 out of the 57 IPOs are trading above the issue price, with an average return of 46 percent. This positive trend indicates investor confidence and solid market reception for these offerings.
(With Agency Inputs)
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