IPO Frenzy Of 2024: Bajaj Housing, Gala Precision & Other Bumper Listings Raise Rs 62,000 Cr In 8 Months

The year 2024 has been a booming one for the Indian Initial Public Offering (IPO) market, as the stock market continues to attract significant investor interest. In just the first eight-and-a-half months of the year, 57 IPOs have been successfully completed-matching the total number of IPOs seen in all of 2023. However, what sets this year apart is the striking increase in the amount of capital raised. According to Prime Database, these 57 IPOs have collectively raised over Rs 62,000 crore, outstripping the Rs 49,400 crore raised by the same number of IPOs throughout 2023. This increase excludes Vodafone Idea's Follow-On Public Offer (FPO), valued at Rs 18,000 crore.

August IPO Boom

August has emerged as the best month of 2024 for fundraising in the primary market. In this single month, 10 IPOs were launched, raising a cumulative total of over Rs 17,000 crore. The month saw heightened investor enthusiasm, which propelled several companies to not just meet their subscription targets but surpass them with overwhelming demand.

The month of September has started strong as well, with seven IPOs already hitting the market, collectively raising Rs 9,205 crore. Notably, many of these IPOs have completed their subscription process and are awaiting listing on stock exchanges. The current momentum suggests that the rest of the year could see even more IPOs, potentially setting a record for capital raised in recent times.

2024's IPO

The returns offered by many of these IPOs have been a major draw for investors. Out of the 57 IPOs completed in 2024, five have delivered more than 100% returns from their IPO price, making them standout performers. Additionally, 15 IPOs have provided returns between 50% and 90%.

Interestingly, only seven of the 57 IPOs listed in 2024 are currently trading below their issue price. This relatively low number of underperforming IPOs highlights the favourable market conditions and investor confidence in new public issues. Even among those IPOs that have struggled post-listing, none have seen their stock prices plummet by 50% or more.

The Biggest IPO of 2024: Bajaj Housing Finance

While 2024 has not seen any mega IPOs like those of 2021 and 2022-Paytm raised over Rs 18,000 crore in 2021, and LIC shattered records in 2022 with its Rs 21,008 crore public issue-there have still been significant debuts. Bajaj Housing Finance's IPO took the crown as the biggest in 2024 in terms of bids received. Its public issue, which closed earlier this week, attracted bids worth more than Rs 3 lakh crore, despite an overall subscription of 67x. The IPO's massive demand made it the largest of the year so far, followed by Ola Electric and Bharti Hexacom.

Strong Performers of 2024

Among the 45 IPOs that have delivered positive returns in 2024, Jyoti CNC stands out as the best performer. The stock has more than tripled in value since its IPO, offering healthy returns to early investors. Other notable mentions include Unicommerce and Premier Energies, both of which have seen significant upward movements in their stock prices shortly after listing.

Negative Performers

On the flip side, a handful of IPOs have delivered negative returns, including Capital Small Finance Bank and Popular Vehicle. However, none of these companies have seen their stock prices dip by 50% or more.

With 2024 already surpassing 2023 in terms of funds raised through IPOs and several high-return stocks rewarding investors, the Indian IPO market remains in robust health. The market's resilience and attractiveness have made it a fertile ground for companies looking to raise capital and investors seeking lucrative opportunities.