May 2024 was a vibrant month for the IPO market, witnessing substantial activity with five companies collectively raising ₹9,606 crore, marking the highest monthly total in eight months since September 2023. A significant portion of the funds, approximately ₹6,200 crore or 64%, came from the offers for sale category, while fresh capital issuances contributed ₹3,404 crore.
**IPO Performances:**
– **TBO Tek:** Best debut with a 55% premium.
– **Indegene:** Listed at a 45% premium.
– **Awfis Space Solutions:** Achieved a 9.9% listing gain.
– **Go Digit General Insurance:** Debuted with a 5.1% premium.
– **Aadhar Housing Finance:** Listed at its issue price, with no premium or discount.
**IPO Issue Sizes:**
– **Aadhar Housing Finance:** Largest issue at ₹3,000 crore.
– **Go Digit General Insurance:** ₹2,615 crore.
– **Indegene Ltd:** ₹1,842 crore.
– **TBO Tek Ltd:** ₹1,550.80 crore.
– **Awfis Space Solutions:** ₹598.93 crore.
**Subscription Rates:**
– **Awfis Space Solutions:** Most subscribed at 108.2 times.
– **TBO Tek:** 86.69 times.
– **Indegene:** 70.3 times.
– **Aadhar Housing Finance:** 26.76 times.
– **Go Digit General Insurance:** 9.6 times.
**Market Sentiment and Future Outlook:**
Experts anticipate a potential slowdown in IPO activity due to upcoming national election results and the associated short-term market volatility. The primary market tends to avoid volatility, and many companies may delay their IPO plans until post-election stability is achieved. Investors are particularly cautious about the implications of a coalition government and may wait until the July Budget for clearer economic policies.
Pranav Haldea, Managing Director of Prime Database, noted that any secondary market turbulence would likely dampen primary market activity. Additionally, Viraj Gandhi, CEO of Samco Mutual Fund, highlighted that liquidity has been constrained by a surge of QIPs and IPOs over the past year, suggesting subdued activity in the near term.
Despite this, the market remains optimistic. Eleven IPOs, with a combined issue size exceeding ₹9,200 crore, have received SEBI approval but are yet to list. These include prominent names like Le Travenues Technology (Ixigo’s parent firm), Allied Blenders & Distillers, Asirvad Microfinance, and Fincare Small Finance Bank.
Mahavir Lunawat, Managing Director of Pantomath Capital Advisors, believes India’s IPO market will continue to thrive, potentially becoming the second largest globally. He anticipates significant capital inflow into public markets, driven by both new-age and conventional companies with strong fundamentals. The upcoming Union Budget is expected to play a crucial role in shaping the market’s direction.
**Overall Market Activity:**
By May 2024, 29 IPOs have raised ₹27,651 crore, compared to 57 IPOs raising ₹49,436 crore in 2023. This indicates robust market activity and investor interest, despite potential short-term volatility due to political developments.
