IPOs reach 8-month peak in May, raising Rs 9,600 crore

The initial public offering or IPO market saw over 9,600 crore rupees raised in May, marking the highest monthly total in eight months, as per the moneycontrol report. This comes amidst a continued rally in the midcap and smallcap sectors.

The report further adds that five companies collectively raised 9,606 crore rupees through IPOs in May, the largest amount since September 2023.

Four of these issues exceeded 1,000 crore rupees. Aadhar Housing Finance led the way with 3,000 crore rupees, followed by Go Digit General Insurance with 2,615 crore rupees, Indegene Ltd with 1,842 crore rupees, and TBK Tek Ltd with 1,550 crore rupees.

In the past two months, the primary focus of IPOs has been to benefit existing shareholders through listings. Approximately 75% of the funds raised have been via the Offer for Sale (OFS) route, excluding Vodafone. Funds raised through OFS go directly to the existing shareholders who have sold their stakes and do not benefit the company financially.

Meanwhile, the stock market has seen declines in May. The Sensex and Nifty have dipped by 0.7% and 0.4%, respectively. The broader market indices, such as the BSE MidCap and SmallCap, have experienced losses of 2.5% and 1.2%, respectively.