IPOs in 2024
IPOs in 2024 – In 2024, the stock market experienced a surge in Initial Public Offerings (IPOs), with over 90 companies making their debut in the public markets. What’s more, an impressive 65 percent of these public offerings are currently trading above their initial issue prices.
Among the standout performers is Jyoti CNC Automation, which went public in January and has delivered exceptional returns. The company’s shares are currently trading at Rs 1,369 each, a substantial increase from the issue price of Rs 331.
Following closely behind is KRN Heat Exchanger and Refrigeration, which entered the market in October. With an issue price of Rs 220, the company’s shares are now trading at Rs 732, marking a remarkable 233 percent gain. Premier Energies, which made its debut in September with an issue price of Rs 450, has also seen a significant increase, with the current market price at Rs 1,309.8, reflecting a 191 percent rise.
Other notable gainers include Mamata Machinery (159 percent), Bharti Hexacom (156 percent), Platinum Industries (148 percent), Gala Precision Engineering (147 percent), and Orient Technologies (134 percent). One Mobikwik Systems, a recent addition to the market, has also seen substantial gains, with shares trading at Rs 628.55, up 125 percent from the issue price of Rs 279.
However, not all listings fared well in 2024. Popular Vehicles and Services, which went public in March, experienced a significant 47 percent decline from its issue price of Rs 295. Capital Small Finance Bank also saw a 40 percent drop from its issue price of Rs 468.
Additionally, Vodafone Idea’s follow-on public offer (FPO) faced challenges, with the stock declining by 32 percent from its FPO issue price.
Bumper listings
The significance of listing gains, which refers to the increase in share price on the day a company goes public, cannot be understated. A study conducted by the Securities and Exchange Board of India (SEBI) revealed that a majority of investors are primarily interested in IPOs for the potential listing gains.
In the past year, there were several notable instances of companies experiencing substantial listing gains. For example, Vibhor Steel Tubes, which made its debut in February, saw an impressive 196 percent increase in its share price on the first day of trading. Similarly, BLS E-Services Limited, also listed in February, experienced a significant 171 percent jump in its share price.
Another noteworthy example is Mamata Machinery, which recently went public on December 27 and achieved a remarkable 159 percent increase in its share price on the day of listing. These instances highlight the allure and potential profitability of investing in IPOs for listing gains.
December’s IPO boom
December was the most active month of the year in terms of Initial Public Offerings (IPOs). According to a report by Moneycontrol, December witnessed the highest number of IPOs in nearly 17 years, with over 15 companies launching their public issues and raising approximately Rs 24,950 crore.
This surge in IPO activity marks the highest since February 2007, which had 18 offerings. Among the top performers in the December IPOs were Mamata Machinery, One Mobikwik Systems, DAM Capital Advisors, and Vishal Mega Mart. However, Suraksha Diagnostic, which went public on December 6, experienced a 13 percent decrease from its issue price of Rs 441.
Overall, December proved to be a significant month for IPOs, showcasing a strong market appetite for new offerings and investment opportunities.
What’s next for the IPO market?
In a recent report by Pantomath Group, it was revealed that India has emerged as the leader in IPO volume, surpassing the US and Europe by hosting twice as many IPOs. In the first 11 months of 2024, approximately 76 companies raised around Rs 1.3 trillion.
Looking ahead to the 2025 IPO market, Managing Director of Pantomath Group, Mahavir Lunawat, expressed optimism in the report. Lunawat stated, “With the current momentum in the markets, we anticipate that the equity raised through IPOs will exceed Rs 2 lakh crore in 2025. This achievement highlights the resilience of India’s capital markets, the confidence of investors, and the significant role that IPOs play in driving economic growth.”
The report also indicated that 34 companies have received SEBI approvals to raise Rs 41,462 crore, while an additional 55 firms are awaiting clearance to raise another Rs 98,672 crore.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.