India's booming IPO market: 47 companies raise over Rs 16,000 crore in September

India's primary market, which was once dominated by institutional players, is now seeing a significant increase in retail investor participation, driven by the potential for higher returns and easier access to financial markets.

In September alone, 47 companies made their debut in the secondary market, raising a total of Rs 16,152 crore, according to Livemint.

Of these, 13 were from the mainboard segment, with Bajaj Housing Finance leading the pack with an IPO size of Rs 6,560 crore, followed by Premier Energies at Rs 2,830.4 crore.

The remaining 34 companies were in the SME (small and medium enterprises) category.

An impressive 61 percent of these companies are currently trading above their issue prices.

Travels & Rentals' SME IPO leads with a 283 percent gain, while Premier Energies follows with a 146 percent increase, and Namo eWaste Management has surged 127 percent.

Retail investors' enthusiasm for IPOs, especially in the SME segment, has led to record-breaking subscription levels.

It’s become rare to find an SME IPO not fully subscribed in the retail category, with some oversubscriptions reaching extraordinary levels—up to 2,000 times in certain cases.

Many SME stocks are seeing gains of over 100 percent on listing days, adding to the excitement.

In September, the SME IPO of WOL 3D saw its retail portion oversubscribed by 488 times.

Of the 34 SME IPOs that went public in the month, 16 had their retail portions subscribed more than 100 times.

The surge in retail participation has motivated more companies to tap the financial markets for fundraising, as favourable market conditions have made the IPO route increasingly attractive.

The momentum is clearly visible, with India’s IPO market tripling in the first eight months of 2024.

During this period, 227 IPOs raised a combined USD 12.2 billion—nearly three times the USD 4.3 billion raised in the same period in 2023, according to GlobalData, a London-based data analytics and consulting company.

India has become a standout player in the Asia-Pacific (APAC) region, which saw 575 IPO listings in the first eight months of 2024, raising USD 23.7 billion—a 15.6 percent increase compared to the same period in 2023.

Recent listings, such as Bajaj Housing Finance, Ola Electric, and Premier Energies, have garnered significant attention, and the momentum in the tech startup IPO space is just beginning.

Companies like Hyundai Motor, Swiggy, the National Stock Exchange, Waaree Energies, Mobikwik, and NTPC Green are preparing for their own market debuts.

Notably, Hyundai's IPO is expected to surpass the Rs 21,000 crore raised by LIC.

The surge in IPO activity is reshaping India's financial landscape, with more companies leveraging the primary market, while the expansion of the IPO space is playing a vital role in the broader growth of the Indian economy, as per reports.