Data shows that 2024 has been an extraordinary year for initial public offerings (IPOs). The capital markets have been buzzing with activities. Companies have raced to capitalise on a thriving economy and positive investors' sentiment. The excitement around IPOs has been palpable. Investors are eagerly jumping on board to either ride the wave of listing-day gains or bet on companies with promising long-term growth potential. As the year draws to a close, let’s take a closer look at this sizzling trend and explore some fascinating insights into how the IPO market has evolved this year.
Data from Prime Database reveals that 75 Indian companies collectively raised over Rs 1.5 lakh crore through mainboard IPOs, setting a new benchmark. This eclipses the Rs 49,435 crore mobilised by 57 IPOs in 2023 and the Rs 59,301 crore garnered from 40 IPOs in 2022. The small and medium enterprise (SME) IPO segment is also shining brightly. In 2024 alone, 236 companies have raised a staggering Rs 8,600 crore, the highest-ever capital infusion in this category.
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In 2024, some IPOs dazzled with massive issue sizes, sensational listings, sky-high post-listing returns, and jaw-dropping subscription numbers. To be sure, some other IPOs faltered, erasing investors' wealth or languishing near their issue prices. Here's a closer look at the standout performers and the underachievers.
Top three biggest IPOs of 2024
Hyundai Motor India’s Rs 27,870 crore IPO, the largest in India’s history, surpassed the Rs 21,000-crore milestone set by LIC's initial share sale. However, despite the buzz, the much-anticipated listing on October 22 saw a lukewarm debut, with shares opening at a 1.32 per cent discount.
Swiggy made waves in 2024 with its blockbuster Rs 11,327 crore IPO, stealing the spotlight from its arch-rival, Zomato. The company's shares debuted with a premium of 7.69 per cent and have soared an impressive 26 per cent since listing, cementing Swiggy’s strong position in the food delivery space.
NTPC Green Energy's shares made headlines in 2024 as the third-largest IPO of the year, with an issue size of Rs 10,000 crore. While its debut on the stock exchange saw a modest 3 per cent gain, the stock soon gathered momentum. A post-listing rally of 10 per cent catapulted NTPC Green Energy into the prestigious Rs 1 trillion market capitalisation club, solidifying its position as a key player in the market.
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Top mainboard IPOs of 2024
Vibhor Steel Tubes: The stock made a stellar debut on the bourses, listing at a 181 per cent premium over the listing price on February 20. Interestingly, had one applied through the high net-worth individual (HNI) category, the profit per lot would have been a massive Rs 3,80,000. The issue had received a strong response from investors, getting subscribed 320 times. The company manufactures and exports ERW black and galvanised pipes, hollow steel pipes, and cold-rolled steel strips and coils.
BLS E-Services: Shares made an astronomical start on its stock market debut with a 177 per cent premium. The Rs 310-crore public offer, which was purely a fresh issue of 2.3 crore shares, was subscribed 162.47 times, the second highest figure during the year. Given the recent market correction, the stock has tanked nearly 40 per cent since listing.
Bajaj Housing Finance: The Rs 6,560 crore public offer made a dream start for its allottees after it listed at a massive 135 per cent premium on September 16. The IPO received an overwhelming response, with subscriptions totalling Rs 3.23 lakh crore, official data showed. Following the stellar response, most investors have booked profits and shares are down 20 per cent since listing.
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Mainboard IPOs that listed with the highest discount
Deepak Builders & Engineers India: Shares were off to a terrible start after they tanked 20 per cent on the day of listing. However, investors showed strong confidence in Deepak Builders & Engineers India, with its initial share sale receiving bids for 37.24 crore equity shares—41.54 times the offer size of 89.67 lakh shares.
JG Chemicals: The stock declined nearly 20 per cent on its debut, while it listed at a 6 per cent discount on the bourses. JG Chemicals is India's largest zinc oxide manufacturer, catering to major tyre manufacturing companies worldwide. The company boasts a revenue stream where over 90 per cent is derived from repeat business, emphasising its strong and enduring relationships with end users in the long term.
Jana Small Finance Bank: The stock had a muted market debut, listing at a 4 per cent discount over the IPO price on February 14, before extending losses to fall nearly 12 per cent on the bourses. Jana SFB is the fourth-largest small finance bank in terms of AUM and deposit size. The total issue size was Rs 570 crore.
In the SME IPO market in 2024, around 236 companies have raised a record Rs 8,600 crore, marking the highest-ever capital raised. The sharp rise in SME IPOs underscores the growing interest in smaller, more niche companies looking to tap into the capital markets. This surge in activity marks a new chapter for the SME IPO segment, signalling that smaller businesses are increasingly finding success in the public markets. Here's a look at the best and worst performers in 2024.
Top SME IPOs
Kay Cee Energy & Infra stock made a stellar debut, listing at a 366.66 per cent premium over the IPO price on January 5. The bumper listing was on the back of strong subscription figures as the public issue was subscribed over 959.5 times. Retail investors picked 1,300 times the portion set aside for them, while HNIs bid 1,600 times the reserved portion. The profit per lot for the IPO on the listing day was Rs 4 lakh.
Medicamen Organics had a stellar debut on June 28, listing at Rs 137.85 on the NSE SME, marking an impressive premium of over 305 per cent above the issue price of Rs 34. Interestingly, the shares have pared all losses to trade flat since the start of the year.
GP Eco Solutions India delivered a spectacular debut on the NSE Emerge platform, listing at Rs 375—an impressive 299 per cent premium over its issue price of Rs 94. The IPO witnessed overwhelming demand, with the qualified institutional buyer (QIB) segment subscribed 236.64 times, the non-institutional investor (NII) portion 1,825.61 times, and the retail individual investor (RII) quota 793.2 times. Allotted retail investors made Rs 3.37 lakh per lot on the listing day.
Worst listings in SME space
MVK Agro Food Product had a subdued debut on the NSE Emerge platform on March 7, with shares listing at Rs 79, a steep 34.2 per cent discount from its IPO price of Rs 120. The company shares have tanked 20 per cent in the last three months.
Kalana Ispat shares made a weak start on its stock market debut on the bourses on September 26 after listing at Rs 45, a discount of 32 per cent over the issue price of Rs 66 per share on the NSE SME platform. Over three days, the IPO received robust investor interest after the issue was subscribed 60 times. Retail investors were at the forefront, buying 74.26 times the allotted quota, while non-institutional investors mopped up 40.65 times the portion reserved for them.
BikeWo GreenTech shares had a weak start, opening at Rs 45, down 27.4 per cent from their IPO price of Rs 62. It specialises in selling electric two-wheelers, including both low-speed and high-speed models, as well as used four-wheelers through a network of franchise dealers.
IPOs that grabbed all headlines
Resourceful Automobile, a company operating just two Yamaha showrooms in New Delhi with a staff of only eight, saw its IPO subscribed an astonishing 400 times (Rs 4,700 crore worth of applications) on the final day of bidding. The strong demand, coupled with a high grey market premium (GMP), ignited widespread discussions across social media platforms.
Boss Packing Solutions with 64 employees, a shabby office as seen on X (formerly Twitter), and a jaw-dropping 135x IPO subscription. With an issue size of just over Rs 8 crore, the company, supplying machines for packaging, labelling, capping, and filling, received bids worth a whopping Rs 1,073 crore.
In sum, 2024 has been a year where IPOs have taken centre stage, with unprecedented levels of activity, record-breaking funds raised, and a market that’s been ripe with opportunity. Whether it’s the Mainboard or SME sector, the IPO wave has created a whirlwind of excitement, showcasing not only the strength of investor sentiment but also the shifting dynamics of the Indian stock market. As we look ahead, it will be exciting to see whether this surge in IPOs continues heading into 2025.
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