Record-breaking May 2024 IPO Market: ₹9,606 Crore Raised by 5 Firms, No Discounts on Listing

In May 2024, five firms collectively raised ₹9,606 crore through their Initial Public Offerings (IPOs). Surprisingly, none of these IPOs were listed at a discount to their issue prices. TBO Tek had the most successful debut, with its stock listing at a 55 percent premium to its IPO price. Indegene followed closely behind, debuting at a 45 percent premium.

Positive Listing Gains

The other three IPOs also saw positive listing gains. Awfis Space Solutions gained 9.9 percent, Go Digit General Insurance debuted at a 5.1 percent premium, and Aadhar Housing Finance listed at par with its issue price.

Four out of the five IPOs had issue sizes exceeding ₹1,000 crore. Aadhar Housing Finance had the largest issue size of ₹3,000 crore, followed by Go Digit General Insurance with ₹2,615 crore, Indegene Ltd with ₹1,842 crore, and TBK Tek Ltd with ₹1,550.80 crore. Awfis Space Solutions had a comparatively smaller issue size of ₹598.93 crore.

All five IPOs were oversubscribed, with one of them receiving over 100 times the subscription. Awfis Space Solutions was the most subscribed IPO, with an overall subscription of 108.2 times, followed by TBO Tek at 86.69 times, Indegene at 70.3 times, and Aadhar Housing Finance at 26.76 times. Go Digit General Insurance had the lowest subscription at 9.6 times.

Expert Insights

Experts suggest that upcoming IPO aspirants might delay their plans due to short-term volatility risks. They believe that until there is stability in the secondary market, IPO activity might remain subdued. The recent election results have caused uncertainty, with the BJP falling short of a majority and expected to focus more on consumption spending than capital expenditure.

Despite this, the IPO market in India remains strong. Several companies are waiting to list after receiving permission from the Securities and Exchange Board of India (SEBI). These include Ixigo’s parent firm Le Travenues Technology, Allied Blenders & Distillers, Asirvad Microfinance, and Fincare Small Finance Bank.

According to Mahavir Lunawat, Managing Director of Pantomath Capital Advisors, India has become the second-largest IPO market. He expects the continuation of existing policies to fuel further growth in the IPO market. So far in 2024, 29 IPOs have raised ₹27,651 crore, compared to 57 IPOs raising ₹49,436 crore in 2023.