Best first half for IPOs in 17 years, 37 firms mop up nearly US$ 3.83 billion (Rs. 32,000 crore)

The primary market is thriving, setting new records alongside the secondary market. Three initial public offerings (IPOs) will close this week, capping the best first half in 17 years. According to the Prime Database, 37 companies from diverse sectors have raised almost US$ 3.83 billion (Rs. 32,000 crore) during this period. Compared to the first half of last year, funding has jumped fourfold, supported by strong liquidity from both foreign and domestic investors. This year's activity contrasts sharply with past election years when IPO markets slowed down significantly. Bankers noted that more certainty regarding the election outcome gave issuers confidence to proceed immediately.

Among the IPOs, Bharti Hexacom raised the largest amount, US$ 512.3 billion (Rs. 4,275 crore), followed by Aadhar Housing Finance with US$ 359.5 million (Rs. 3,000 crore). The smallest IPO was Vibhor Steel Cubes, which raised US$ 8.6 billion (Rs. 72 crore). The average deal size slightly decreased from US$ 107.4 billion (Rs. 896 crore) in the first half of 2023 to US$ 102.9 million (Rs. 859 crore) this year. So far in 2024, the Sensex has gained 6.8%, and the Nifty 8.1%. Newly listed firms have rewarded investors well, with the BSE IPO index rising 21.8% this year. The financial sector dominated with US$ 944.2 million (Rs. 7,879 crore), accounting for a quarter of the total capital raised. Looking ahead, bankers expect a possible pause before the Union Budget. However, the pipeline remains strong, with marquee names such as Swiggy, Hyundai India, and Ola preparing to enter the market.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.