IPOs in Samvat 2080: Rs 1.08trn raised; will Samvat 2081 keep frenzy alive?

Samvat 2080 proved to be a blockbuster year for the Indian primary market with 82 companies raising Rs 1.08 trillion thus far during the year. This amount is set to rise as the Samvat 2080 is not yet over, and initial public offers (IPOs) of a few companies are still open for subscription.

In terms of sheer size of the IPO, Samvat 2080 belonged to South Korean automaker Hyundai Motors that tapped the Indian markets with a mega Rs 27,000 crore offering – the highest amount raised via the IPO route. 

Bajaj Housing Finance Limited IPO, on the other hand, saw a phenomenal response from the investors. The IPO garnered a staggering Rs 3.2 trillion in bids for its Rs 6,560-crore IPO, drawing nearly 9 million applications and eclipsing the previous record held by Tata Technologies. Notably, Tata Technologies also launched its IPO in the same Samvat year. 

Other major players that went public this year include Bharti Hexacom, Indian Renewable Energy Development Agency (IREDA), Go Digit General Insurance, Brainbees Solutions (Firstcry), Ola Electric Mobility, Aadhar Housing Finance, Premier Energies, and Bajaj Housing Finance. The year also saw an Rs 18,000 crore follow-on public offer (FPO) from Vodafone Idea.  

Market analysts attribute the strong performance of the primary markets to favourable secondary market conditions, ample liquidity, regulatory reforms, and increased transparency, which led to enthusiastic investor participation.  

“This surge is largely due to strong stock market performance, robust investor participation across categories, and plenty of available liquidity. Investors are showing confidence by betting big on Indian companies, even paying premiums for certain IPOs in the hope of strong growth in the medium-to-long term. Many public issues have received overwhelming responses, with strong listing gains boosting investors' trust in the primary market,” said Prashanth Tapse, senior vice-president for research at Mehta Equities.  

Both retail and institutional investors, according to Sunil Shah, group chief executive officer at Khambatta Securities, hopped on to the IPO bandwagon, reflecting heightened confidence in India's growth story.  

“A broad range of sectors, from tech to manufacturing, have tapped into the IPO market in Samvat 2080, diversifying opportunities for investors,” Shah said.    IPO market outlook Samvat 2081    

Market analysts remain optimistic about the outlook for the Indian markets in Samvat 2081. In this backdrop, they expect more companies to test the markets in search for funds via the IPO route.

 

Companies expected to go public soon, according to reports, include National Stock Exchange (NSE), National Securities Depository (NSDL), Vishal Mega Mart, NTPC Green Energy, ONGC Green Energy, Satluj Jal Vidyut Nigam (SJVN), and Swiggy. 

Among other upcoming offerings, 28 companies have received approval from the capital market regulator, the Securities and Exchange Board of India (Sebi), and are estimated to raise around Rs 49,889 crore through public offerings. 

Meanwhile, nearly 63 companies that have filed their papers with SEBI, aiming to raise approximately Rs 90,608 crore through IPOs, are awaiting regulatory approval, as per data provided by PRIME Database. 

Tapse expects that companies aiming to benefit from India’s growth story are likely to tap into the domestic IPO market to raise capital.  

“Given that India’s economy is in a stronger position compared to many developed countries and domestic funds are steadily flowing into equities, the IPO pipeline is likely to remain strong,” Tapse said.