Financial Year 2024 Sees Record IPO Activity and Listing Gains

Financial Year 2024 (FY24) marked a historic period for Initial Public Offerings (IPOs) in India, with a remarkable surge in both the number of IPOs and listing gains. According to a report by 1Lattice, FY24 witnessed the highest number of IPO listings ever recorded, with 78 IPOs hitting the market and raising a total of Rs 64,000 crores. This averages out to around Rs 866 crores per issue.

The standout feature of FY24 was the strong performance of these IPOs post-listing. Approximately 40 per cent of the companies saw listing gains exceeding 25 per cent, reflecting significant investor interest and confidence in these offerings. Notably, 60 per cent of the IPOs experienced subscription rates exceeding 25 times, indicating robust demand from investors.

The report also highlighted a trend towards smaller issuances in FY24, with an average issue size of Rs 800 crores compared to Rs 1,400 crores in FY23 and Rs 2,100 crores in FY22. This shift towards smaller IPOs suggests a more diversified range of offerings in the market.

In terms of listing performance, 78 per cent of the IPOs in FY24 closed the listing day with premium, underlining the overall positive sentiment towards new listings. Out of these, 3 IPOs recorded triple-digit returns, while 41 IPOs saw double-digit returns on the listing day.

Additionally, FY24 saw a substantial increase in Qualified Institutional Placements (QIPs), with 59 QIPs raising approximately Rs 69,000 crores, further demonstrating the strong market activity and investor confidence during the financial year.

Overall, FY24’s IPO market activity and performance reflect a positive outlook for the Indian capital markets, driven by increased investor participation and successful new offerings.