In 2023, a collective of 57 Indian corporates successfully raised Rs 49,434 crore through main board IPOs, marking a 17 percent decrease from the Rs 59,302 crore raised by 40 IPOs in 2022, as reported by Prime Database.
However, when excluding the substantial LIC IPO from 2022, the IPO mobilization witnessed a notable 28 percent increase compared to the preceding year.
The public response to these IPOs was notably strong. Among the 57 IPOs, 41 received an exceptional response, being oversubscribed more than 10 times—16 of which garnered over 50 times oversubscription. Additionally, nine IPOs witnessed oversubscription by more than three times, while seven IPOs were oversubscribed between 1 to 3 times.
Remarkably, the response from retail investors surged significantly compared to 2022. The average number of applications from retail investors spiked to 13.21 lakh, a considerable increase from 5.66 lakh in 2022. Notably, Tata Technologies received the highest number of retail applications (52.11 lakh), followed by DOMS Industries (41.30 lakh) and INOX India (37.34 lakh).
The enthusiasm of retail investors was further highlighted by the value of shares applied for, amounting to Rs 1,49,988 crore, which surpassed the total IPO mobilization by 203 percent. This robust participation exhibited a substantial increase in retail investor enthusiasm during the period, a stark contrast to 2022 when this figure was 22 percent lower than the total IPO mobilization. However, despite the surge in applications, the total allocation to retail investors stood at Rs 13,749 crore, constituting 28 percent of the total IPO mobilization, slightly down from 29 percent in 2022.
(With Agency Inputs)
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