IPO market booms: Q2 2024 raises record $4.2 billion
The second quarter of 2024 witnessed a significant surge in the size of initial public offerings (IPOs). It reached a two-year high at $4.2 billion, according to a Grant Thornton Bharat Dealtracker report. This growth was achieved despite a 42% fall in the number of IPOs compared to the previous quarter, indicating a trend toward fewer but larger public issues. A total of 14 public issues contributed to this substantial sum during Q2.
Rise in QIPs
The second quarter of 2024 also saw an increase in the number of Qualified Institutional Placements (QIPs), with a total of 20 issues amounting to $2.3 billion. This represents a growth in both value and volume compared to the previous quarter, marking the second highest volume since Q4 2017. The data suggests a positive trend for larger institutional investments during this period.
Retail and consumer sector leads deal activity
Despite a 7% fall in volumes, the retail and consumer sector led deal activity in Q2 2024, demonstrating an 18% climb in values over the first quarter. The IT & ITes sector also saw growth, with a 9% increase in volumes, although it witnessed a decline in average deal value. Tech start-ups were at the forefront of this sector, and led both volumes (47%) and values (36%).
Pharma, healthcare, and biotech achieve substantial value
The healthcare, pharma, and biotech sector achieved a substantial value of $3.8 billion in Q2 2024. This was largely driven by mega deals and significant private equity investments accounting for 68% of volumes and 65% of values. The manufacturing sector also witnessed considerable growth with a notable 28% increase in volumes and a dramatic nine-fold rise in values, propelled by premium deals in industrial materials led by the Adani Group.
Momentum gained in various sectors
Several sectors, including aviation and professional services, gained momentum during Q2 2024. The agriculture, logistics, transport, and real estate sectors also experienced an upsurge. However, some sectors such as education, infrastructure, hospitality, media, and leisure, witnessed declines in overall deal numbers during this period. These trends reflect the dynamic nature of market activity across different industries.
