IPO news: In equity’s Indian summer, IPOs and investors make hay in 2024

Mumbai: The majority of this year’s initial public offerings (IPOs) have been hits – generating strong investor responses and delivering significant returns following substantial listing gains. About 38 IPOs have taken place so far in 2024 with an average listing gain of 25% and average returns after debuting at 49% till date.

Four stocks – Jyoti CNC Automation, Exicom Tele-Systems, JNK India and TBO Tek – have delivered returns of 100-300% over the offer price. Eight – including Bharti Hexacom, Le Travenues Technology, BLS E-Services, DEE Development Engineers and Vibhor Steel Tubes – rallied between 57% and 92%. Another 18 gained between 8% and 44%, with only eight stocks trading below their offer price.

The biggest IPO of the year was the ₹4,275-crore Bharti Hexacom share sale. The stock is trading 85% above its offer price. The issue was subscribed 30 times in April. The ₹3,000-crore Aadhar Housing Finance offer has returned 33% over its offer price, with the IPO having been subscribed 27 times.Investor appetite for IPOs this year was keen amid the surge in stocks overall. Nine IPOs, including Vibhor Steel Tubes, BLS E-Services, Mukka Proteins, Exicom Tele-Systems, Vraj Iron and Steel, Kronox Lab Sciences, Nova AgriTech, Awfis Space Solutions, and DEE Development Engineers, were subscribed 100 to 320 times. Another 22 IPOs were subscribed between 13 and 100 times.

“Buoyed by favorable business prospects, decent pricing and a strong secondary market, supported by consistent domestic and foreign investment flows, most recent IPOs received a strong response,” said Dharmesh Mehta, MD and CEO of DAM Capital.

IPOs Make Hay in 2024
“Also, the majority of the IPOs have delivered fantastic returns, prompting retail investors to flock to the offerings.”
To be sure, not all had a smooth ride on the exchanges. Eight struggled to meet expectations, with shares falling below the issue price. Capital Small Finance Bank dropped the most this year, trading 26% below the offer price. Gopal Snacks was 18% below its offer price. Akme Fintrade, RK Swamy, SRM Contractors, Entero Healthcare Solu tions, Gopal Snacks, GPT Healthcare and Popular Vehicles and Services are other companies that are trading down from their offer price.

The 38 companies raised nearly ₹34,000 crore compared with ₹49,436 crore raised by 57 companies in all of 2023 or ₹59,302 crore raised by 40 companies in 2020. At least three dozen companies, including Afcons Infrastructure, Ola Electric, Swiggy, NSDL, Asirwad Micro, Premier Energies, Shiva Pharmachem, One Mobik wik Systems, Waaree Energie and CJ Darcl Logistics, are likely to hit the market this year.

Shapoorji Pallonji Group’s flagship infrastructure engineering and construction company, Afcons, is likely to launch its maiden public issue next month to raise ₹7,000 crore.

Electric scooter maker Ola Electric may also launch its IPO in the next few weeks. The IPO application is pending with the market regulator. The company intends to raise ₹5,500 crore via the sale of new shares.