5 firms raised Rs 9,606 crore via initial public offerings in May

Five firms collectively raised Rs 9,606 crore via initial public offering in May which was the highest in 8 months, since September 2023. As per Mint, the offers for sale category accounted for 64% of the total fundraising, approximately Rs 6,200 crore, while the fresh capital issuances contributed Rs 3,404 crore.

IPO Fundraising

It must also be noted that none of the 5 IPOs were listed at a discount to their issue prices. TBO Tek witnessed the best debut performance, listing at a 55% premium to its IPO price, followed by Indegene, which debuted at a 45% premium.

Awfis Space Solutions posted 9.9% listing gains, Go Digit General Insurance debuted at 5.1% premium. Meanwhile, Aadhar Housing Finance was listed at 0 percent premium/discount i.e. same as its issue price.

On the issue sizes, four issues exceeded Rs 1,000 crore with Aadhar Housing Finance having the highest issue size of Rs 3,000 crore, followed by Go Digit General Insurance with Rs 2,615 crore, Indegene Ltd with Rs 1,842 crore, and TBK Tek Ltd with Rs 1,550.80 crore. Meanwhile, Awfis Space Solutions raised Rs 598.93 crore via its IPO.

As per Mint, all the 5 IPOs were oversubscribed. Awfis Space was the most subscribed IPO in May with its overall subscription in the 3 days of bidding at 108.2. It was followed by TBO Tek, which received 86.69 times bids, Indegene at 70.3 times and Aadhar Housing Finance at 26.76 times. Meanwhile, Go Digit General Insurance witnessed the lowest total subscription at 9.6 times.

Upcoming IPOs

Meanwhile, Mint quoted experts and said that upcoming IPO aspirants might delay their plans due to short-term volatility risks. Until there is some stability in the secondary market, there might not be much activity in the IPO market.

"Markets don't like any turbulence. And if there is any turbulence in the secondary market, then the primary market activity becomes tepid. There has been no certainty regarding who will come to power during the previous election cycles. This time, investors are a lot more surefooted," Pranav Haldea, managing director of Prime Database told Mint.

In 2024, around 11 IPOs with issue size of more than ₹9,200 crore have received permission from SEBI. However, they are not listed yet.

"India has become the 2nd largest IPO market. With election results being out, the continuation of existing policies is highly expected which will fuel the IPO boom further. We witness significant capital to be deployed in public markets & strong demand for new-age as well conventional companies. We believe that companies with good fundamentals will go public & attract large amounts of capital from the street. The upcoming Union Budget will be a crucial trigger for understanding the new government’s strategy for the economy," Mahavir Lunawat, Managing Director, Pantomath Capital Advisors told Mint.

As per Mint, in 2024, so far, 29 IPOs have raised ₹27,651 crore from market till May. In 2023, the country saw 57 IPOs with an aggregate issue size of ₹49,436 crore.

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