Indian IPOs have raised staggering ₹ 1.22 lakh crore in 2024, per report

Fundraising through initial public offerings (IPOs) has set a new milestone in 2024 with the cumulative amount of funds raised through IPOs reaching a staggering over ₹ 1.22 lakh crore so far in the current calendar year, surpassing the previous record set in 2021, according to primedatabase.com.

Pertinently, this has surpassed the previous record of ₹ 1.18 lakh crore in 2021, with two months still to go in the current year. Around 70 % of this record amount has been raised since August.

While public issues raised a total of ₹ 17,109 crore in August, it was followed by ₹ 11,058 crore in September and an all-time monthly record of around ₹ 38,700 crore in October. Previously, November 2021 held the record for the maximum IPO fundraising at ₹ 35,664 crore.

Meanwhile, November will see four major IPOs — Swiggy, Sagility India, ACME Solar Holdings, and Niva Bupa Health Insurance — aiming to raise a cumulative amount of ₹ 19,334 crore.

However, following several big IPOs in October, excitement in the primary markets appears to be waning after the Hyundai Motor IPO listing.

Experts suggest that the lackluster performance of a major IPO, which failed to generate listing gains on its debut day, has dampened sentiment.
Three subsequent IPOs after Hyundai also listed negatively on their respective listing days. Garuda Construction and Engineering saw marginal gains of around 12 percent at listing but is currently trading below its issue price.

Hyundai is currently trading around 10 % below its issue price, while Deepak Builders & Engineers India listed 20 % below its issue price and is now trading at around 23 % lower from its issue price. Waaree Energies, which was expected to debut with a 90 % premium, is listed at a premium of 59 %.

With Swiggy set to launch its IPO next month, investor enthusiasm remains tepid. The grey market premium for the issue is trading flat, and analysts are cautioning investors due to its loss-making status and the perception that the IPO size is overvalued.

According to analysts, overall the market is in a silent period due to multiple reasons like continued selling pressure from FIIs followed by disappointing domestic quarterly earnings and rather subdued future guidance by management.

This situation has eventually affected the primary market mood along with the flat debut of the largest IPO Hyundai and lower than expected listing of other IPOs. Waaree Energies' pre and post-listing expectations also got affected due to subdued market mood mainly on the back of FII pressure in the overall market, according to media reports.

Prashant Tapse, Analyst with Mehta Equities was quoted as saying that the upcoming IPOs including that of Swiggy, Afcons Infrastructure, ACME Solar, and Sagility India will feel the heat of subdued market momentum.

“Overall primary investor enthusiasm is dull and low, which can affect Swiggy subscription demand similar to what was witnessed in Hyundai. We remain cautious about Swiggy due to its loss-making status and overvaluation when compared to its peers. On the primary stage, it looks like there is nothing left on the table for new investors. Only risk takers can subscribe to Swiggy IPO offer”, Tapse said.

Along with record IPOs, funds raised through qualified institutional placements or QIPs have also achieved a remarkable milestone by raising over ₹ 96,000 crore so far in 2024. Notably, 65 % of this amount has been raised through QIPs since July.