IPO fundraising in H1FY24 drops 26% to ₹26,300 crore

• In the first half of 2023–24, 31 Indian corporates raised ₹26,300 crore through main board IPOs, a drop of 26% from the ₹35,456 crore raised by 14 IPOs during the same time in 2022–23, as per Prime Database Group's report. Let's take a look at the key highlights from the report. 

1/6IPO mobilisation climbed significantly from the previous year by a whopping 76%, excluding LIC IPO that was launched last year, as per Prime Database in its report. (iStock)

2/6IPO Subscription Status: Mankind Pharma IPO, worth ₹4,326 crore was the biggest during the first half of 2023–2024. JSW Infrastructure ( ₹2,800 crore) and RR Kabel ( ₹1,964 crore) came after this. On the other extreme, Plaza Wires' IPO raised the least amount of funds, only ₹67 crore. The average deal size was ₹848 crore. As many as 21 of the 31 IPOs came up in only the months of August and September.

3/6Listing gains in IPO: In comparison to the first half of 2022–23, the average listing gain (based on the closing price on the listing date) jumped to 29.44% from 11.56%. 20 of the 28 IPOs that have been listed so far have generated returns of more than 10%. Utkarsh Small Finance Bank came in second (92%), followed by Ideaforge (93%), and Netweb Technologies (82%). As of the closing price on October 3, 2023, 27 out of the 28 IPOs are trading above the issue price. (MINT_PRINT)

4/6Anchor Investors in IPO: A total of 36% of the public issue's total amount was subscribed for by anchor investors. With their subscription totalling to 15% of the issue amount compared to FPIs' 14%, domestic mutual funds played a marginally more significant role than FPIs as anchor investors. (Photo: Courtesy Mono Pharmacare website)

5/6SME IPOs: The first half of 2023–24 saw a sharp increase in activity in this market, with 97 SME IPOs raising a total of ₹2,731 crore, a 140% increase over the ₹1,137 crore from 63 IPOs during the same period in the previous year. Spectrum Talent Management ( ₹99.99 crore) was the largest SME IPO. (Shutterstock)

6/6Outlook for second half of 2023-24: The pipeline continues to remain strong. 28 companies proposing to raise ₹38,000 crore are presently holding SEBI approval while another 41 companies looking to raise about ₹44,000 crore are awaiting SEBI approval (Out of these 69 companies, 3 are NATCs which are looking to raise roughly ₹12,000 crore). According to Haldea, notwithstanding the present volatility in the secondary market, the next 4-5 months are likely to see several IPOs being launched before a pause on account of the general elections.