The domestic primary market was bustling in Samvat 2080, with a flurry of high-profile initial public offerings (IPOs) and strong market debuts grabbing investor interest, largely driven by positive market sentiment.
A total of 332 companies, including both SME and mainboard, went public, reflecting strong investor enthusiasm and increased corporate confidence. Meanwhile, 82 mainboard companies have raised an impressive ₹1.08 trillion so far. This figure is expected to grow as several IPOs remain open for subscription before year-end.
The highlight of the year was Hyundai Motors' record-breaking public offer. The auto major launched the largest-ever IPO in India at ₹27,000 crore. Bajaj Housing Finance also made waves, drawing ₹3.2 lakh crore in bids for its ₹6,560 crore issue. High-profile names like Bharti Hexacom, IREDA, Firstcry (Brainbees Solutions), Ola Electric, Aadhar Housing Finance, and Premier Energies also went public, and telecom major Vodafone Idea also raised ₹18,000 crore through a follow-on public offer (FPO). Notably, Tata Technologies marked Tata Group’s first public offering in nearly two decades, since Tata Consultancy Services in 2004.
According to analysts, this strong IPO performance has been fueled by a buoyant secondary market, ample liquidity, regulatory improvements, and enhanced market transparency, all of which contributed to robust investor demand.
As Samvat 2081 approaches, the IPO pipeline remains strong, with companies poised to leverage favourable market conditions. The pipeline for the second half of FY25 looks promising, with 26 companies cleared to raise ₹72,000 crore by SEBI. Another 55 companies, aiming to raise about ₹89,000 crore, await regulatory nod. This fiscal year’s total raised funds neared ₹1 trillion, with expectations of a new record by March 2025. The momentum was evident as September ended with 15 companies filing draft prospectus papers, making it one of the most active IPO periods in over 14 years.
Notable upcoming issues include the Swiggy IPO, potentially opening in the middle of November, along with anticipated IPOs from companies like NSE, Tata Capital, Vishal Mega Mart, NTPC Green Energy, NSDL, and HDB Financial Services. The robust pipeline and investor confidence underscore that the IPO market shows no signs of slowing down as Samvat 2081 approaches.
Approximately 12 IPOs have turned multibaggers in Samvat 2080, delivering impressive returns, with IREDA leading the pack. IREDA saw a return of over 522 per cent, rising from its IPO price of ₹32 to its current trading price of ₹198.95. This stock was listed in November 2023 and has since become a standout performer.
Meanwhile, Motisons Jewellers saw a return of over 418 per cent, rising from its IPO price of ₹55 to its current trading price of ₹285.10. This stock was listed in December 2023.
Other notable performers include Doms Industries, Jyoti CNC Automation, Tata Technologies, Bharti Hexacom, Platinum Industries, Diffusion Engineers, Protean eGov Technologies, Premier Energies, Exicom Tele Systems, and KRN Heat Exchanger.
Doms Industries, listed in December 2023, surged 228 per cent from its issue price of ₹790. Similarly, Jyoti CNC, which went public in January 2024, soared 205 per cent from its IPO price of ₹331. Bharti Hexacom, listed in April 2024, increased by 157 per cent from its IPO price of ₹570, while Platinum Industries saw gains of 146.5 per cent from its IPO price of ₹171.
Protean eGov Technologies also delivered significant returns, rallying over 133 per cent from its IPO price of ₹792. Tata Technologies and Diffusion Engineers both posted gains of slightly over 100 per cent. Exicom Tele Systems rose 115 per cent from its issue price of ₹142, and Premier Energies climbed 114 per cent from its offer price of ₹450.
Beyond these multibaggers, the broader IPO landscape in Samvat 2080 has been favourable for investors. Out of the 82 companies that went public this year, over 70 per cent of the issues have seen a positive post-listing performance, with more than 60 currently trading above their offer prices, contributing to a strong track record of value creation in the market.
This year witnessed India’s largest public offering from Hyundai India, which raised approximately ₹27,870 crore. Despite the high expectations, the premium pricing combined with subdued demand led to a lacklustre debut, and the stock is currently trading about 8 per cent below its IPO price, making it among this year’s underperformers. Amid the broader valuations, some experts also recommend staying away from the public offers.
"Looking at broad valuations, there are pockets of opportunities within private banks and financial services, where you can find well-managed companies with strong fundamentals. Our investing style remains sector and theme agnostic though," said Krishnan VR, Chief of Quantitative Research team at Marcellus.
In addition to Hyundai, 16 other IPOs encountered market setbacks, with varying degrees of post-listing declines. The most significant drop was seen in Capital Small Finance Bank, whose current market price sits nearly 39 per cent below its issue price. This was followed by Muthoot Microfin, down by 30 per cent, Kross with a 29 per cent decline, and Fedbank Financial, which dropped 28 per cent. Tolins Tyres fell 25 per cent, while Baazar Style Retail declined by 13 per cent, GPT Healthcare dropped 13.5 per cent, and Flair Writing decreased by 8 per cent. These performances highlighted the challenges faced by select IPOs amid volatile market conditions.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
