New-Age IPOs Surge in August, Raising a Whopping ₹17,000 Crore—Aesthetik Engineers and Brainbees Solutions Among Top Performers

In August, new-age companies led the way in the IPO market, raising a record ₹17,000 crore, making it the highest amount raised this year. The previous high was in February, with around ₹7,500 crore, while July saw companies raise ₹5,063 crore.

Ola Electric’s IPO Highlights

Among the notable IPOs in August was Ola Electric, which successfully raised about ₹6,145 crore. However, investor demand was mixed, with the IPO being subscribed four times. This lukewarm response was reflected in its stock market debut, which fell short of expectations. Despite this, Ola Electric’s shares doubled after listing, offering strong returns to investors in the secondary market. Although the stock later faced some profit-taking, it still trades 56% above its offer price.

Other Major IPOs

Brainbees Solutions, the company behind the FirstCry platform, launched its ₹4,193 crore IPO in August, receiving a strong response from investors. Since listing, its shares have risen by 38% compared to the offer price.

Unicommerce, another internet company, also made headlines with its IPO, which was subscribed over 100 times. The stock debuted at a 118% premium, making it one of the best performers on the market in August.

In total, eight companies went public in August, with only one, Ceigall India, experiencing a negative debut.

SME Market Activity

The SME market was also active in August, with 20 companies launching public offerings despite concerns about regulations and market advisor caution. These companies raised a cumulative ₹758 crore, making August the third-best month this year for capital raising in the SME sector.

Subscription rates were high, with eight IPOs receiving responses of 300 times or more. Aesthetik Engineers topped the list with a subscription rate of over 700 times, followed closely by Braceport Logistics with a 657-time demand. Though pricing caps on SME platforms limited initial listing gains to a maximum of 90%, several companies saw their shares deliver multibagger returns on Day 1 of trading.

Looking Ahead

The IPO market is on an upswing, driven by strong market sentiment and robust economic growth. In August, 17 companies filed draft red herring prospectuses (DRHPs) with the regulator, the highest monthly filings in over a year. Analysts expect the IPO market to stay active for the rest of the year, fueled by favorable conditions.

Recently listed IPOs have performed exceptionally well, boosting confidence among companies and investors alike. This renewed optimism is encouraging investors to explore opportunities in the primary market, while companies are increasingly looking to raise funds through IPOs. Foreign investors are also showing interest in India’s primary market, attracted by the potential for higher returns.