Retail applications in India’s IPO market surge in H1 FY24

The Indian Initial Public Offering (IPO) market has seen a significant rise in retail applications during the first half of fiscal year 2024 (H1 FY24), according to data reported by Primedatabase and Axis Capital (NYSE:). Despite fewer mega IPOs such as Life Insurance Corporation’s from the previous year, retail applications surged to ₹55,516 crore ($7.4 billion), marking a substantial 118% increase over total IPO mobilization.

In the previous year, ₹35,456 crore ($4.7 billion) was mobilized by 14 IPOs, including the significant contribution from Life Insurance Corporation’s IPO. The current fiscal year, however, has witnessed fewer such mega offerings.

Several companies, including IdeaForge Technology, Aeroflex Industries, and Netweb Technologies, offered significant returns on their listing day. This trend combined with the Securities and Exchange Board of India (SEBI)’s recent reforms have been noted as contributing factors to this surge in retail applications.

In addition to this, ₹26,300 crore ($3.5 billion) was raised through main board IPOs this season.

Looking ahead, industry experts Pranav Haldea and Mahavir Lunawat from Pantomath Capital Advisors anticipate a wave of IPOs in the next four to five months before a pause due to the general elections. They predict that 28 companies propose to raise ₹38,000 crore ($5 billion), with an additional 41 companies from Tier II and Tier III regions looking to raise about ₹44,000 crore ($5.8 billion).

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