After strong H1, no slowing down for IPOs

Having witnessed remarkable surge in the first half of the current fiscal, fund raising through initial public offers (IPOs) shows no signs of relenting. Both domestic and international investors are channelling capital into companies with strong expansion plans, further fuelling India’s IPO boom.

Among the latest to hit the primary market is Niva Bupa Health Insurance IPO, which was launched today and plans to raise Rs 2,200 crore.

According to data, 25 companies are planning to raise an approximate total of Rs 63,550 crore, and have already secured SEBI approval for the same, while another 48 companies are awaiting SEBI’s nod to raise an estimated Rs 91,805 crore. During H1 of FY25, 40 Indian companies raised Rs 51,365 crore through mainboard IPOs — a 95 per cent increase over the Rs 26,311 crore raised in the same period of FY24, according to data.

According to analysts, in the first half of 2024, while global IPO markets cooled, India’s IPO market saw a remarkable surge, defying the trends observed in the US, Japan, and China.

Globally, IPO volumes declined by 12 per cent, with proceeds down 16 per cent year-over-year.

However, India’s primary market experienced strong growth, with fundraising nearly doubling compared to the previous year.

“The Indian primary market witnessed a robust influx of IPOs in the first half of the year, supported by positive market conditions, strong economic growth, lower inflation and stable interest rates. Around 40 mainboard IPOs took place in H1FY25, many of which saw high demand from investors and substantial post-listing gains, reflecting prudent pricing strategies and a favourable market environment. This momentum has increased confidence among promoters to raise funds via IPOs and encouraged investor participation in public offerings,” said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors (P) Ltd.

Earlier, as the Indian stock market continues to exhibit robust growth despite global uncertainties, a record 15 companies registered their IPO documents with SEBI on the last day of September.

This pushed total filings for the month to 41 — the highest-ever IPO document filings in a single month.

India’s benchmark indices, the NSE Nifty 50 and the S&P BSE Sensex, have risen by 15 per cent and 13.2 per cent respectively, making them the fifth and seventh best-performing indices in Asia this year.