The IPO pipeline remains robust in 2024, with 27 companies having received SEBI approval to raise a combined amount of Rs 28,500 crore, and another 36 companies awaiting approval to raise a total of Rs 40,500 crore.
“The next couple of months should see several IPOs being launched before a pause on account of the general elections,” said Pranav Haldea, Managing Director, of Prime Database Group.
Out of these 63 companies, 3 are new-age technology companies (NATC), namely OYO, Digit Insurance and First Cry, which are looking to raise roughly Rs 16,000 crore, according to Prime Database.
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In 2023, a total of 57 firms raised Rs 49,434 crore through mainboard IPOs, 17 percent lower than the Rs 59,302 crore mopped up by 40 IPOs in 2022. However, excluding the mega LIC IPO of the previous year 2022, IPO mobilisation increased by 28 percent in 2023.
Largest and smallest IPOs of 2023
The largest IPO of 2023 was Mankind Pharma (Rs 4,326 crore), followed by Tata Technologies (Rs 3,043 crore) and JSW Infrastructure (Rs 2,800 crore). On the other hand, the smallest were Udayshivakumar Infra (Rs 66 crore) and Plaza Wires (Rs 71 crore). The average deal size in the previous year reduced significantly to Rs 867 crore from Rs 1,483 crore in 2022 and Rs 1,884 crore in 2021.
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“While we saw companies from multiple sectors tapping the IPO market in 2023, one key sector which had a limited presence was BFSI with just Rs 6,190 crore (or 13 percent) being raised by companies from this sector (in comparison to 46 per cent in 2022). NATC too were few at just 2 (Yatra and Mamaearth),” Haldea added.
Retail Interest
Retail participation increased significantly in 2023 with the average number of applications from retail investors surging to 13.21 lakh compared to 5.66 lakh in 2022.
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The highest number of applications from retail was received by Tata Group’s first IPO in nearly two decades - Tata Technologies (52.11 lakhs) followed by pencil maker - DOMS Industries (41.30 lakhs) and cryogenic tank manufacturer - INOX India (37.34 lakhs).
Average listing gain
In 2023, the average listing gain jumped to 29 percent from 11 percent in 2022. Of the 57 IPOs, 40 gave a return of over 10 percent. Tata Technologies gave a spectacular return of 163 percent followed by Ideaforge (93 percent) and Utkarsh Small Finance Bank (92 percent). 53 of the 57 IPOs are trading above the IPO price with an average return of 46 percent.
SME space
The small and medium enterprises segment saw a massive upsurge in 2023 with 182 SME IPOs collecting a total of Rs 4,681 crore, 150 percent higher than Rs 1,875 crore from 109 IPOs in 2022. The largest SME IPO was Spectrum Talent Management (Rs 99.99 crore).
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