CHENNAI: Funds raised by Indian corporates in 2023 are 17% less than what they mobilized in 2022, though the number of listings went up. 57 Indian corporates have raised Rs 49,434 crore through main board initial public offerings (IPOs) in 2023, while 40 IPOs in 2022 fetched Rs 59,302 crore, according to prime database, a capital market intelligence provider.
However, excluding the mega LIC IPO which came out in 2022, fundraising increased by 28% compared to last year. Overall public equity mobilization jumped 59% to Rs 1,44,283 crore in 2023 from Rs 90,886 crore last year.
The largest IPO in 2023 was from Mankind Pharma which raised Rs 4,326 crores, followed by Tata Technologies' Rs 3,043 crore and JSW Infrastructure raising Rs 2,800 crore. 41 IPOs received a mega response of more than 10 times. The average number of applications from retail increased to 13.21 lakh from 5.66 lakh. The highest number of retail applications is for Tata Technologies.
SME IPOs witnessed a huge increase in 2023 with 182 IPOs collecting a total of Rs 4,681 crore, which is 150% higher than Rs 1,875 crore from 109 IPOs.
Outlook for 2024
27 companies proposing to raise Rs 28,500 crore currently hold SEBI approval, while another 36 companies looking to raise about Rs 40,500 crore are awaiting SEBI approval. The next couple of months should see several IPOs being launched before a pause on account of the general elections, Prime database report said.
According to Pranav Haldea, Managing Director, Prime Database Group, "IPO response was further buoyed by strong listing performance. Average listing gain (based on closing price on listing date) increased to 29 per cent, in comparison to 11 per cent in 2022."
53 of the 57 IPOs are trading above the issue price (closing price of 1st January, 2024) with an average return of 46%.