Evolution of Indian IPOs : Since the liberalization of the Indian economy in 1991, the stock market has played a pivotal role in shaping the nation’s financial landscape. One notable aspect of this evolution is the staggering number of Initial Public Offerings (IPOs) that have occurred since the fiscal year 1989-90.
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Evolution of IPOs in India
In this blog post, we’ll delve into the historical data of Indian IPOs, exploring the trends, fluctuations, and the overall growth trajectory of the market.
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The Early Years (1989-1999)
The journey begins in 1989-90 when the Indian stock market witnessed a surge in IPOs, with 186 issues raising a substantial ₹2,522 crores.
The subsequent decade marked varying degrees of IPO activity, with the year 1998-99 being relatively quiet, raising a mere ₹504 crores through 22 issues.
This period laid the foundation for what was to come, setting the stage for the IPO boom of the 21st century.
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Entering the New Millennium (2000-2010)
The early 2000s saw a significant uptick in IPOs, with 1999-00 recording 56 issues that raised ₹2,975 crores. The year 2003-04, in particular, stands out, witnessing 28 IPOs collectively raising a staggering ₹17,807 crores.
This period was characterized by increased market optimism and a growing appetite for equity investment.
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The Mid-2000s Surge (2005-2010)
The mid-2000s brought about a surge in IPO activity, with 102 issues in 2005-06 and 85 in 2006-07, raising ₹23,676 crores and ₹24,993 crores respectively.
The subsequent years witnessed a roller-coaster ride, with the global financial crisis in 2008-09 causing a dip in IPO numbers.
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Post-Crisis Resurgence (2010-2015):
The Indian IPO market rebounded post the global financial crisis, with 44 issues in 2009-10 raising ₹46,941 crores.
The years that followed, especially 2010-11 and 2011-12, continued the upward trajectory, solidifying the market’s recovery.
The fiscal year 2014-15 recorded 39 issues raising ₹29,716 crores, indicating sustained confidence in the market.
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Recent Years (2016-2023):
The last decade has seen remarkable growth, both in terms of the number of IPOs and the capital raised. The fiscal year 2017-18 was a milestone, witnessing 81 IPOs raising a whopping ₹98,984 crores. This trend continued in subsequent years, with 2020-21 being a standout year, where 69 IPOs collectively raised ₹74,708 crores.
As of September 2023, the IPO momentum remains strong, with 42 issues raising ₹41,815 crores. The total tally since 1989-90 stands at an impressive ₹9,49,685 crores from 6,649 IPOs.
Analysis and Future Outlook
The data reflects the dynamic nature of the Indian stock market, with periods of exuberance, consolidation, and recovery. The surge in recent years is indicative of a growing confidence among investors, driven by economic reforms, technological advancements, and a maturing regulatory environment.
Looking ahead, factors such as geopolitical events, economic policies, and global market dynamics will continue to influence the IPO landscape. The ongoing digitization and the rise of new-age industries are likely to contribute to the vibrancy of the market.
Conclusion
The journey of Indian IPOs is a testament to the resilience and adaptability of the nation’s financial markets. From the cautious beginnings of the late ’80s to the robust activity witnessed in recent years, the IPO landscape has evolved significantly.
As India continues to position itself as a global economic powerhouse, the role of IPOs in fueling growth and innovation is set to become even more pronounced in the years to come. The data showcases not just numbers but the unfolding story of a nation’s economic transformation.
FAQs
In which year did the highest number of IPOs occur in the Indian stock market?
The maximum number of IPOs occurred in 1995-96 when 1402 IPOs were introduced to the Indian stock market, raising around 8,723 crore rupees.
In which year did the lowest number of IPOs occur in the Indian stock market?
The lowest number of IPOs occurred in 2001-02 & 2002-03 when only 6 IPOs were introduced to the Indian stock marketin both years.
What is the highest amount of money raised in a single year through IPOs in Indian Stock Market?
In the fiscal year 2021-22, a record amount of 1,30,376 Crore Rupees was raised, marking the highest sum collected in a single year.
What is the lowest amount of money raised in a single year through IPOs in Indian Stock Market?
In the fiscal year 1998-99, a record amount of 504 Crore Rupees was raised, marking the lowest sum collected in a single year.
How much is the total amount collected via IPOs in the Indian stock market?
The total amount collected via IPOs in the Indian stock market is 9,49,685 Lakh crores through 6,649 IPOs, spanning from 1989 to September 2023.
