Primary market all set for mega listings

Primary market all set for mega listings

India’s second-largest carmaker, Hyundai Motor India, is set to launch a Rs 25,000 crore IPO this year, which would be the country’s largest ever. Then there are mega offerings by Bajaj Housing Finance, Afcons Infrastructure and OLA Election. There is also strong buzz that Tata Group may launch new IPOs this year.

NEW DELHI: With a handful of more IPOs to hit the market this week, India would see more companies going public in the first half of this year than it has seen in nearly 2 decades. As per BSE data, 37 IPOs collectively raising nearly Rs 32,000 crore by June -end 2024. Only in 2007, a year before the collapse of the global finance market, the Indian market saw more listings, 54 to be precise, in the 6 month period.

“Primary market has been witnessing a significant surge in the number of IPOs since FY22.The average number of IPOs launching since 2022 has increased to 50-60 IPOs a year and the average size of IPOs has gone up from Rs 240 crore at the beginning of 2000 to Rs 1,270 crore and the overall primary market has grown 3 times bigger than it was at the beginning of the millennium,” said Sarvjeet Singh Virk, co-founder & MD, Shoonya by Finvasia.

Bharti Hexagon, which raised Rs 4,275 crore, was the largest IPO in the first half of CY24. It was followed by Aadhar Housing Finance (Rs 3,000 crore). When it comes to total fundraising, this year’s figure is only next to H1 of CY22 when 16 firms mopped up about Rs 40,300 crore. A bulk of this came from the market’s biggest-ever IPO of Life Insurance Corporation of India.

Narendra Solanki, head of fundamental research, Investment Services, Anand Rathi Shares and Stock Brokers, said in recent years, equity market has seen a surge in IPO activity which attracted investments from various participants, including participation from HNIs and retail investors. Secondary market is also on the rise with benchmarks- Sensex and Nifty - gaining 9-10% each so far this year.

Solanki believes despite global periodic headwinds, the momentum is likely to continue in H2CY24, led by a rise in domestic liquidity and investor appetite, a rise in diverse set of businesses coming for IPOs, an increase in number of new-age companies, a strong pipeline of upcoming IPOs and sustained economic growth brings much-needed confidence for investors.

India’s second-largest carmaker, Hyundai Motor India, is set to launch a Rs 25,000 crore IPO this year, which would be the country’s largest ever. Then there are mega offerings by Bajaj Housing Finance, Afcons Infrastructure and OLA Election. There is also strong buzz that Tata Group may launch new IPOs this year.

Singh believes that the market may mop up as much as Rs 90,000 crore this year. “In H1 CY2024, the IPO market is at its all-time high with 56 companies in the pipeline for SEBI’s nod for their IPO launches. Nearly Rs 90, 000 crore is to be raised from this IPO this year. The robust primary market conditions can be attributed to the business-friendly economic environment in the country, stable policies, and stability in the government,”

Primary market all set for mega listings
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The New Indian Express
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