India’s public equity fundraising surged by 69% in the first half of 2023-24, a significant contrast to a 26% decrease in Initial Public Offering (IPO) funding. As part of this surge, thirty-one firms managed to accumulate Rs 26,300 crore (Rs 1 crore = $120,256) through main board IPOs. The largest contribution came from Mankind Pharma with an offering of Rs 4,326 crore, followed by JSW Infrastructure and RR Kabel. Plaza Wires held the smallest IPO during this period.
Pranav Haldea from PRIME Database Group noted the subdued presence of the Banking, Financial Services, and Insurance (BFSI) sector in the IPO market. Despite this, retail investor engagement has seen a considerable increase. Shares applied by retail value outstripped total IPO mobilization by an impressive 118%.
Notably, there was a slowdown in tech company IPOs during this period. However, many firms are currently awaiting approval from the Securities and Exchange Board of India (SEBI) for their offerings in H2 2023-24.
If we exclude Life Insurance Corporation’s (LIC) mega IPO from the prior year, there is a clear upswing of 76% in IPO mobilization. Post-listing, Ideaforge, Utkarsh Small Finance Bank, and Netweb Technologies led in returns.
Anchor investors played a significant role during this period. Domestic Mutual Funds and Foreign Portfolio Investors (FPIs) subscribed to a substantial portion of the total public issue amount.
Despite current market volatility, the outlook for the ensuing months remains positive with numerous IPOs on the horizon. This suggests that India’s public equity fundraising may continue to see strong growth in the coming months.
