stock market The spectacular growth in GDP, the government’s focus on infrastructure and good GDP growth brought joy to the companies launching IPOs this year. The initial public offering (IPO) market is expected to witness significant growth in 2024. During the year, 90 companies have raised a record amount of Rs 1.6 lakh crore through IPO. It is believed that next year will also be very good for IPOs. This year, which has been an extraordinary year for IPOs, not only reflects the confidence of the companies making issues, but also reflects the confidence of investors. Apart from listing gains, investors also expressed confidence in the long-term capabilities of the companies.
There was noise about the IPO of these big companies
This year, Hyundai Motor India’s IPO worth Rs 27,870 crore came. This is the largest IPO in the history of the country. The biggest IPO of this year was that of Hyundai Motor India (27,870 crore). It was followed by Swiggy (Rs 11,327 crore), NTPC Green Energy (Rs 10,000 crore), Bajaj Housing Finance (Rs 6,560 crore) and Ola Electric Mobility (Rs 6,145 crore). In contrast, the IPO size of Vibhor Steel Tubes was the smallest i.e. Rs 72 crore.
IPO market will remain bullish even in 2025
Market analysts believe that there will be a rise in the activities of raising funds through IPO in the new year also. The number of IPOs in the next year i.e. 2025 may exceed this year’s figure. Munish Agarwal, managing director and head of equity capital markets at Equirus, said 75 IPO documents are currently in various stages of approval. On this basis, we believe that in 2025, companies can raise up to Rs 2.5 lakh crore through IPO.
These companies can bring IPO in the new year
The companies whose IPOs are coming next year include the proposed issue of Rs 12,500 crore of HDB Financial Services. Apart from this, an issue of Rs 15,000 crore of LG Electronics India and an IPO of Rs 9,950 crore of Hexaware Technologies are also proposed. According to data available with the exchange, there were 90 IPOs in 2024 through which Rs 1.6 lakh crore was collectively raised. This includes eight IPOs ending on December 23-24. Apart from this, the Rs 500 crore IPO of Unimech Aerospace and Manufacturing is scheduled to open on December 23. Also, Vodafone Idea has raised Rs 18,000 crore through follow-on public offering (FPO).
57 companies had raised funds from IPO
Last year i.e. in 2023, 57 companies had raised an amount of Rs 49,436 crore from IPO. In 2021, 63 companies had raised Rs 1.2 lakh crore from IPO. This was the highest figure in two decades. According to data from PrimeDatabase.com, the IPO market of small and medium companies (SMEs) has also seen a lot of growth this year.
SME companies also raised a lot of money from the market
During the year, 238 small and medium companies have raised Rs 8,700 crore by issuing shares. An amount of Rs 4,686 crore was raised through SME IPO in 2023. During the year, large, medium and small companies raised funds by issuing shares. The average size of IPOs will increase to Rs 1,700 crore in 2024. In 2023 it was Rs 867 crore. There have been at least 15 IPOs in December alone. V Prashant Rao, Director and Head-ECM, Investment Banking, Anand Rathi Advisors, said, “Increasing participation of retail investors and active participation of foreign portfolio investors (FPIs), increase in private capital expenditure and government spending on infrastructure and key sectors. “With careful consideration, the activities of collectively raising funds through IPO gained momentum.”
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