NEW DELHI: The primary market is closing calendar year 2024 with a bang as two of the most awaited initial public offerings (IPOs) garnered a blockbuster response from investors.
While the initial share sale of fintech firm Mobikwik was subscribed more than 119 times, the offering of supermart chain Vishal Mega Mart, which launched a mega issue of Rs 8,000 crore, was subscribed little over 27 times.
In the Mobikwik IPO, the portion set aside for retail investors is subscribed 134.67 times while the portion reserved for Qualified Institutional Buyers (QIB) was booked 119.50 times. The quota reserved for Non Institutional Investors (NII) was booked 108.95 times. For Vishal’s IPO, QIB’s led the charge as this category’s quota was booked nearly 81 times.
The enthusiasm shown by investors for the two IPOs is in line with interest shown by them for other IPOs throughout the year. As per BSE data, the IPO market saw a total of 76 listings (as of December 13, 2024). While 58 IPOs delivered positive listing gains, 18 IPOs experienced negative listing day returns.
Recent data shared by Prime Database stated that 75 Indian companies raised over Rs 1.5 lakh crore through mainboard IPOs. This is a big jump given 57 IPOs had raised Rs 49,435 crore in 2023 and 40 IPOs has raised Rs 59,301 crore in 2022.
Himani Shah, Co-Fund Manager, Alchemy Capital Management said that companies in the power, energy, and industrial sectors performed well, driven by anticipated increases in capital expenditures.
“Additionally, many of these companies offered some valuation upside for investors. When company valuations account for potential upside, leaving no room for investors, they often get discounted or corrected…2025 is likely to see strong IPOs in industrials, capital goods, and renewable energy sectors, as these are driving India’s growth story,” Added Shah.
The biggest IPO of this year and the biggest so far in India’s capital history was of Hyundai Motor India Ltd. The Rs 27,870 crore IPO was subscribed 2.37x and listed at a discount of 1.33%. The other big IPOs were launched by Swiggy, NTPC Green and Bajaj Housing Finance.