September IPO Frenzy: 47 Companies Raise ₹16,000+ Crore, Bajaj Housing Finance Leads, 61% Stocks Soar

India’s stock market is buzzing with excitement, as both primary and secondary markets show strong activity. In September, 47 companies launched Initial Public Offerings (IPOs), raising a total of ₹16,152 crore.

Of these companies, 13 were from the mainboard category, with Bajaj Housing Finance leading the way with the largest IPO of ₹6,560 crore. Premier Energies followed with an issue size of ₹2,830.4 crore. The remaining 34 companies came from the SME (small and medium enterprises) category.

Big Gains in September IPOs

Around 61% of the companies that listed in September are now trading above their issue prices. Travels & Rentals’ SME IPO had the highest gain, with a 283% increase, followed by Premier Energies with 146%, and Namo eWaste Management at 127%.

Retail investors are playing a major role in the IPO surge. In particular, SME IPOs have seen extremely high demand, with some offerings oversubscribed by as much as 2,000 times. Listing day gains of over 100% are becoming common for these IPOs.

For example, the SME IPO of WOL 3D was oversubscribed by 488 times in the retail portion. Of the 34 SME IPOs listed last month, 16 had their retail sections subscribed more than 100 times.

Growth of IPO Market in India

The success of recent IPOs has encouraged more companies to raise funds through public listings. As market conditions remain favourable, many firms are taking advantage of the opportunity.

India’s IPO market has seen massive growth in 2024. In the first eight months of the year, 227 IPOs raised a combined USD 12.2 billion. This is nearly three times the amount raised during the same period in 2023, according to a report by GlobalData.

India has been a major player in the Asia-Pacific region’s IPO market, which recorded 575 IPOs during this period, generating USD 23.7 billion. This marks a 15.6% increase compared to last year.

Big Names Preparing for IPOs

Several high-profile companies, including Hyundai Motor, Swiggy, and the National Stock Exchange, are preparing for their IPOs. Hyundai’s IPO is expected to be especially large, potentially surpassing the size of the LIC IPO, which raised ₹21,000 crore.

IPO Boom Reshaping Indian Market

The surge in IPO activity is reshaping the Indian financial landscape. More companies are using the primary market to raise funds, and this trend is contributing to the overall growth of India’s economy.

Manish Bhandari, CEO & Portfolio Manager at Vallum Capital Advisors, said, “IPO is an essential part of a firm’s lifecycle and can boost a country’s economic growth. Indian investors are now more involved in financial markets, and the strong demand for IPOs reflects this. However, investors should do their research and be cautious, as the current market is driven by high demand.”