After an impressive IPO run in 2023, Rs 60,000 crore share sale lined up for 2024

The year 2023 saw an impressive number of retail investors gravitating towards equity market as well as a rush among promoters to take their companies public. As per Moneycontrol, the number of mainboard IPOs that hit the market in 2023 was the second highest in over 10 years.

After this stellar year, Dalal street is set to enter the new year of 2024 with about Rs 60,000 crore of share sale lined up.

IPO Cheer

Moneycontrol quoted analysts and said that this IPO cheer is likely to stay on on the back of robust economic growth, ample liquidity, anticipated rate cuts from global central banks and expected continuity of the current regime beyond the Lok Sabha elections next year.

Also Read: Inox India shares debut at 44% premium over the IPO price

The report also mentioned that there is an anticipation of market boost in the first half of 2024.

"IPO activity has been robust this year and the momentum is expected to continue into 2024. There is eagerness among investors to tap capital markets ahead of the general elections. This seems a prudent strategy as well given that historically, Indian equities have usually done well heading into general elections", Mohit Ralhan, CEO, TIW Capital told Moneycontrol.

IPO Performance in 2023

According to Prime Database, about 57 companies raised around Rs 49,000 crore via mainboard IPOs in 2023. Along with this 27 more companies have received nod from the market regulator SEBI to float their public issues and raise around Rs 29,000 crore while 29 companies are awaiting approval. The companies that are awaiting approval involve a cumulative fundraise of about Rs 34,000 crore.

Just in the month of December, 11 companies raised about Rs 8,256 crore through share sales via IPOs. This was aided by the rally in domestic equity markets. The benchmark Sensex and Nifty have surged nearly 15% each in 2023, with BSE midcap and smallcap indices jumping around 45% and 50%.

Meanwhile there has been a dip in the number of companies that have filed the draft herring prospectus with SEBI this year. Nearly 80 firms alone have filed DRHPs in 2023.

IPO Expectations for 2024

Despite the dip in DHRPs, market participants are eagerly waiting for some high-profile names to enter the primary market in the new year such as Ola Electric, Swiggy and FirstCry, reported Moneycontrol.

According to news reports, these three companies are expected to raise $500 million (about Rs 4,000 crore) each.

Also Read: E-commerce platform FirstCry to file draft papers to raise over $500 million via IPO: Report

Other highly anticipated IPOs in 2024 include Ebixcash, Tata Play, Indegene, Oravel Stays (OYO), Go Digit General Insurance, and TBO Tek.

As per Analysts who spoke to Moneycontrol, Private Equity and Venture Capital funds are more active due to the better investor sentiment and are looking to monetise assets. The report mentioned that with this prevalent bullish sentiment, they're inclined to seek exits through IPOs or through bulk deals.

In 2024 traditional sectors such as manufacturing and financial services will sustain strong IPO activity, Moneycontrol said quoting analysts. The Manufacturing sector is expected to grow due to India's increasing capital expenditure and a slowdown in industrial activity in China.