The primary market is experiencing robust growth, achieving unprecedented milestones alongside the secondary market. As the first half of the year draws to a close, three initial public offerings (IPOs) are set to conclude, marking the strongest performance in 17 years. According to data from the Prime Database, a total of 37 companies across various sectors have collectively raised nearly US$ 3.83 billion during this period. This represents a fourfold increase compared to the same period last year, driven by substantial liquidity from both domestic and foreign investors. Unlike previous election years characterized by subdued IPO activity, the current year has seen heightened confidence among issuers, buoyed by greater certainty surrounding the election outcome.
Among the notable IPOs, Bharti Hexacom emerged as the top raiser with US$ 512.3 million, followed by Aadhar Housing Finance with US$ 359.5 million. The smallest offering came from Vibhor Steel Cubes, which secured US$ 8.6 million. Although the average deal size slightly decreased from US$ 107.4 million in the first half of 2023 to US$ 102.9 million this year, investor sentiment remained strong. The Sensex and Nifty indices have posted gains of 6.8% and 8.1% respectively in 2024, with newly listed firms proving lucrative for investors as evidenced by a 21.8% increase in the BSE IPO index.
The financial sector led the charge, raising US$ 944.2 million, constituting a significant quarter of the total capital mobilized. Looking forward, market experts anticipate a potential slowdown leading up to the Union Budget; however, the IPO pipeline remains robust. Prominent entities such as Swiggy, Hyundai India, and Ola are poised to make their market debuts, underscoring sustained investor interest and optimism in India’s capital markets.
