5 mainboard IPOs of 2024 trade 100 per cent-270 per cent above their issue prices, Jyoti CNC Automation leads
The year 2024 has seen a surge in Indian IPOs, with 209 companies raising funds in the first eight months. This trend is expected to surpass 2023's record of 238 IPOs.
The year 2024 has emerged as a standout period for initial public offerings (IPOs), with a flurry of Indian companies seizing the opportunity to raise capital through the primary market. These firms capitalised on the favourable and buoyant market conditions, driven by a surge in investor confidence and an appetite for new offerings.
The robust economic outlook and strong market sentiment provided the perfect backdrop for these IPOs, leading to remarkable investor gains. Following the Covid-19 pandemic, many companies paused their fundraising efforts. However, these plans resumed in 2023, fueled by robust participation from Indian retail investors in the financial markets. This influx of capital encouraged companies to seek funds for business expansion and other corporate needs.
The IPO activity, which gained momentum in 2023, has strengthened in 2024. According to Trendlyne data, 209 companies—SMEs and mainboard segments—have raised funds from the capital markets in the first eight months of the current calendar year. If this trend persists in the following months, 2024 will surpass the 238 IPOs recorded in 2023.
SMEs have led the fundraising surge, attracting retail investors with lower IPO prices and the potential for high returns. Meanwhile, mainboard IPOs have also drawn significant interest. Notable Indian companies like OLA Electric, the country’s largest 2W manufacturer, and FirstCry have successfully raised capital from investors.
The trends suggest that this is just the beginning of significant momentum that's impending in the tech startup IPO space in the months to come. This year, Swiggy, PayU, and MobiKwik are set to launch their initial public offerings (IPOs).
FPIs flock to IPO market
The robust surge in IPO activity has also captured the attention of foreign portfolio investors (FPIs), prompting them to shift their focus to the IPO market as valuations in the secondary market become increasingly expensive.
FPIs have poured $6.4 billion ( ₹53,568 crore) into Indian equities via IPOs and qualified institutional placements (QIPs) as of August 19, marking the highest investment in four years, Economic Times reported.
In contrast, FPIs have been net sellers in the secondary market, withdrawing $4.5 billion ( ₹38,007 crore), based on data from NSDL compiled by ETIG. On a net basis, FPIs have been net buyers of $1.9 billion ( ₹15,560 crore) so far in 2024.
For 11 consecutive months, FPIs have shown strong interest in the primary market, investing a total of $8.3 billion ( ₹74,451 crore). However, the ET report showed that they have been net sellers in the secondary market for seven of the past twelve months, with investments totalling $2.7 billion ( ₹22,879 crore).
87% of mainboard listings show gains, 5 more than double in value
Among the 47 mainboard IPOs listed this year so far, 41 are currently trading above their issue prices. Notably, five of these stocks are trading between 100 per cent and 270 per cent above their IPO prices, with Jyoti CNC Automation leading the pack.
Since its debut on Indian exchanges in November at ₹434 per share, Jyoti CNC Automation's stock has surged significantly from its issue price of ₹331. It skyrocketed by 293 per cent in just six months to an all-time high of ₹1,449. Currently, it is trading at ₹1,222, 270 per cent higher than its IPO price.
Another standout performer is Exicom Tele-Systems. After its strong debut in March, the stock is trading at ₹400 per share, a 182 per cent increase from its issue price.
Platinum Industries has also delivered impressive returns, with its shares trading at ₹417, up 144 per cent from the initial issue price of ₹171.
Awfis Space Solutions, listed in May, has shown consistent growth. It finished its first three months positively, with July seeing the highest gain of 34.3 per cent. Currently trading at ₹861, the stock is 125 per cent above its IPO price of ₹383.
Unicommerce eSolutions, which went public on August 6, saw its shares more than double in value within just four days. After an initial gain of 95 per cent on the first day, the stock trades 105 per cent above its IPO price.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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