Currently, the craze for IPOs in the Indian stock market is skyrocketing. In 2024, IPOs have become a major source of profit for investors. This year, several SME and Main Board IPOs have provided excellent returns to investors.
Let’s explore what’s new in the IPO market this year and the opportunities for investors.
What’s Happening?
2024 has seen a rapid surge in the IPO market. By July 1, 2024, 34 companies had launched their Main Board IPOs in the primary market within the first six months. More popular startups are also set to launch their IPOs soon. In total, these 34 companies have raised over Rs 31,000 crore through IPOs this year.
Interestingly, 75% of the companies that went public this year have delivered good profits to their shareholders. Notably, the stocks of five of these companies have more than doubled or even tripled since their IPO, all within just six months.
In 2023, 58 companies launched their IPOs throughout the year. This year, in just the first six months, the number has already reached 34, more than half of last year’s total.
Successful IPOs of 2024
Several IPOs in 2024 have provided investors with excellent returns. Here are some of the key performers:
This table shows the IPOs with the highest listing gains issued in the first 6 months of 2024.
Exceptional Growth in SME Stocks in 2024
This year, SME IPOs have also attracted investors. Among the 110 SME IPOs listed in the first six months of 2024, most companies have performed exceptionally well. According to ACE Equity data, some SME stocks have surged up to 700% this year.
Moreover, out of the 192 SME companies listed on the National Stock Exchange (NSE), over 57%, or 109 companies, have given investors a profit. Among these, 65 companies’ stocks have returned between 10% and 99%, while 25 companies’ stocks have more than doubled in value.
What’s in it for Investors?
The Indian stock market is witnessing significant momentum, largely driven by increasing investor enthusiasm. In 2023, four companies’ IPOs were subscribed over 100 times, and in the first six months of 2024 alone, seven companies have already achieved this milestone.
However, investors should exercise caution before investing in IPOs. Some IPOs, such as Gopal Snacks, RK Swamy, and Capital Small Finance Bank, were listed at a discount, resulting in losses for investors. Therefore, investing in every IPO might be a challenging decision.
What’s Next?
According to CNBC, Pranav Haldea, MD of Prime Database, stated that in the first six months of 2024, approximately 52 IPOs (including some SMEs) have collectively raised over Rs 50,000 crore.
Additionally, around 37 more companies are preparing to launch their IPOs soon, and they have applied to SEBI to raise approximately Rs 50,000 crore. These companies include major names like Emcure Pharma, Bajaj Housing Finance, Afcons Infrastructure, and Waaree Energies.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
