Indian IPOs break record with ₹1.22L crore fundraising in 2024
The Indian market has experienced a record-breaking year for initial public offerings (IPOs) in 2024, with funds raised exceeding ₹1.22 lakh crore. This amount surpasses the previous record of ₹1.18 lakh crore established in 2021, marking a major milestone for the country's financial sector. Notably, around 70% of this year's fundraising has been accomplished since August alone.
Monthly breakdown of record-breaking IPO fundraising
In August, public issues raised ₹17,109 crore. This was followed by ₹11,058 crore in September and an unprecedented monthly record of nearly ₹38,700 crore in October. Before this, November 2021 had the highest IPO fundraising record at ₹35,664 crore. Next month, four major IPOs from Swiggy, Sagility India, ACME Solar Holdings and Niva Bupa Health Insurance are set to raise over ₹19,334 crore.
Market sentiment cools following Hyundai Motor's IPO
Despite the record-breaking IPO fundraising, the market enthusiasm appears to be cooling down after the Hyundai Motor IPO. The underwhelming performance of the mega IPO, which failed to generate listing gains on its debut day, has reportedly dampened the market sentiment. Three other IPOs that followed also witnessed negative listings on their debut days.
Analysts warn investors as Swiggy prepares for IPO
As Swiggy gears up for its IPO next month, investor enthusiasm remains muted. The gray market premium for the issue is trading flat, and analysts are warning investors due to Swiggy's loss-making status and the perception that the IPO size is overvalued. Prashant Tapse from Mehta Equities expressed concerns about upcoming IPOs like those of Swiggy, Afcons Infrastructure, ACME Solar and Sagility India feeling the impact of a subdued market momentum.
QIPs also set new record in 2024
Apart from the record-breaking IPOs, funds raised through qualified institutional placements (QIPs) have also hit a major milestone by raising over ₹96,000 crore so far in 2024. Notably, 65% of this amount has been raised through QIPs since July. This achievement further highlights the strong fundraising activity in India's financial sector this year.
