39 Offerings Mop Up $4.2 Bn This Year

IPOs serve as a bellwether for market sentiment and investor appetite, writes  MAHAVIR LUNAWAT

The IPOs scheduled for the forthcoming week are more than likely to generate substantial investor interest. IPOs serve as a bellwether for market sentiment and investor appetite, making them an essential aspect to monitor. The excitement surrounding these offerings could potentially stimulate market activity, paving the way for a vibrant trading week.

In the primary market during the week 28 October – 3 November, mainboard IPO of Cello World, Honasa Consumer and ESAF Small Finance Bank opened to raise INR 4,064 crore.

In terms of the number of IPOs, India’s share in the global pie has increased sharply. In 2021, India’s share in the total number of IPOs globally stood at 6 per cent. It surged to 11 per cent in 2022. In the first half of 2023, India’s share in the number of global IPO’s has rose to 13 per cent.

India’s IPO sector is booming with the country emerging as the global leader in the number of public offers this year. The stampede to market is expected to keep going well into 2024 with investors encouraged by strong listing gains and a robust economy. This month alone, there are 14 IPOs slated.

Next week looks promising, the focus is on Protean eGov Technologies and ASK Automotive are opening to raise Rs 1,324 crores of funds.

So far during 2023 YTD, 39 IPOs hit the street and raised INR 35,131.96 Crore (~USD 4.22 Bn)

India must continue to focus on enhancing good market practices and fostering investor education. Though secondary market prices were subdued and many stocks got corrected, in the forthcoming months, significant momentum is expected in the Indian IPO market.

During the month of October, 16 DRHPs are filed with SEBI.

Foreign Institutional Investors (FIIs) are showing sustained inflows in India due to the country’s stable macroeconomic outlook, political stability, and impressive financial results, resulting in an 8% market rally since April 2023. India’s consistent GDP growth of over 7% reinforces positive prospects for the market.

The remarkable volume of IPOs in India, covering a diverse range of sectors and industries, showcases the country’s economic resilience and its attractiveness as an investment hub. (The author is Managing Director, Pantomath Capital Advisors Pvt. Ltd. – A Leading Mid-Market Investment Bank.)