In 2024 until October, the mainboard IPOs already raised over Rs. 1 lakh crore, which is the second highest in the history of IPOs. in 2021, Rs. 1.19 lakh crore was raised from mainboard IPOs which has been the highest till date, however, it is still two months to go for 2024 and some of the significant launches are in the pipeline that includes NSDL, Swiggy, NTPC Green energy and more. If you look at the number of IPOs launched, then 2024 again have the second highest number till now (till October) since 2007 when 100 IPOs were launched raising Rs. 34179.11 crore. In 2024 till October, 70 IPOs launched which have raised Rs. 1.03 lakh crore.
Number of Mainboard IPOs and amount raised (2007-2024)
| Isssue amount (Rs crore) | Year | No of IPOS |
| 34179.11 | 2007 | 100 |
| 16904.42 | 2008 | 37 |
| 19544.00 | 2009 | 20 |
| 37534.65 | 2010 | 64 |
| 5966.28 | 2011 | 37 |
| 6835.28 | 2012 | 11 |
| 1283.79 | 2013 | 3 |
| 1200.94 | 2014 | 5 |
| 13614.08 | 2015 | 21 |
| 26493.84 | 2016 | 26 |
| 67147.44 | 2017 | 36 |
| 30959.07 | 2018 | 24 |
| 12361.56 | 2019 | 16 |
| 26612.62 | 2020 | 15 |
| 118723.17 | 2021 | 63 |
| 59301.71 | 2022 | 40 |
| 49435.53 | 2023 | 57 |
| 103000.00 | 2024 (till October) | 70 |
Factors Behind IPO Frenzy
The Indian capital market as a whole have been experiencing a constant influx of capital via back to back IPOs and QIPs. it started since July 2024 and both IPOs and QIPs raised Rs. 1.2 lakh crore together. The highest or the largest IPO till date in this year has been of Rs. 27000 crore by Hyundai Motors. In the previous three months, total Rs. 65000 crore has been raised from IPOs, which includes this Hyundai Motors IPO and QIPs raised Rs. 50000 crore.
The factors behind this IPO frenzy includes a highly liquid market which has make the price move up exorbitantly high However, this is mainly prevalent in the SME stocks as investors seek higher returns from these stocks but often ignore the higher risk involved.
Then the fear of missing out on easy and quick proifits from listing gains of IPOs have been driving massive ipo investments into the primary market. This is again like a bubble and risky for long-term investors.
Finally, the retail investors’ participation in the primary market actions have multiplied the IPO frenzy and it is not dying out soon as it seems.
Upcoming IPOs and Their Size
In the remaining of 2024, the mainboard ipos which will be launched includes Swiggy Ltd.’s IPO, expected in November and the company is looking to raise around Rs. 11000 crore. NSDL will come up this year as well with an IPO of around Rs. 4500 crore, while NTPC Green Energy will be raising Rs. 10000 crore. Vishal Mega Mart Ltd. will be raising Rs. 8000 crore as indicated in their DRHP. Apart from these massive mainboard ipos, there are Asirvad Micro Finance coming up with Rs. 1500 crore IPO, One Mobikwik Systems Ltd. coming up with Rs. 700 crore IPO and SK Finance with Rs. 2200 crore IPO. With these IPOs in the pipeline for 2024, the total fund raising form IPOs can surpass the 2021’s record high of Rs. 1.19 lakh crore.
Conclusion
IPOs have become the new favourite of all the investors whether it is retail investors, or HNIs, and others. With all these IPOs in the pipeline that too just for 2024’s ending months, the primary market look robust and growing rapidly. This craze around IPOs is not fading away soon as experts are predicting, and both mainboard ipo and SME ipos will keep the primary market super busy for the next few years at the least.
Source: MoneyControl
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