Mega issues to multibagger debuts; 2024 turned a historic year for Indian IPO market

2024 turned out to be an historic year for Indian primary market investors with a record number of mainboard companies raising funds through their initial stake sales. The calendar year is yet to see some listing before the year concludes but the current calendar has already been a historic one in terms of raising funds.

From mega issues to startups, a total of 91 mainboard companies hit Dalal Street to raise funds, raising a total of Rs 1.26 crore net of their anchor books. However, only 87 of them have been listed so far, while the remaining four shall make their debut at the bourses during the last two trading sessions of the year. 

In 2024, India’s primary markets experienced robust activity, with nearly 90 mainboard IPOs launches with 70 per cent of these companies achieving listing gains, said Praneet Singhal, Director - Financial Investor at 1Lattice. "During the first 11 months of the year, mainboard IPOs witnessed an average subscription of 65 times, reflecting significant investor enthusiasm," he said.

Interestingly, 59 companies debuted at the bourses on a premium, while 22 made a discounted debut at Dalal Street. Remaining ones listed at par. Overall, 64 companies ended their maiden trading session on a positive note, while 17 others disappointed traders on their maiden trading session.

2024 has been a decent year for retail investors who invested in IPOs. The IPO frenzy was primarily fuelled by encouraging market performance in midcap and small-cap segments and economic prospects, said VLA Ambala, Co-founder at Stock Market Today. The momentum was further supported by domestic liquidity and market resilience despite sharp FII outflow, she said.

More than a dozen new age companies including Swiggy, Mobikwik and Ola Electric Mobility raised a cumulative of more than Rs 29,000 crore, while the year also saw some big ticket IPOs of existing majors like Hyundai Motor India, Vishal Mega Mart and NTPC Green Energy. Three offerings raised more than Rs 10,000 crore, which Hyundai about over Rs 28,000 crore via its IPO.

"The overall trends in 2024 suggest that momentum is building up in the tech startup ecosystem's IPO category, which could shape the future of the Indian stock market. Due As more companies are exploring the primary market, the IPO landscape and its offerings are likely to contribute to market and economy," Ambala said.
 
Companies including Mamata Machinery, Bajaj Housing Finance, Waaree Energies, Premier Energies, KRN Heat Exchanger & Refrigeration, Unicomm eSolutions were some of the key names that turned multibagger on their debut or their maiden trading session. However, a few stocks turned multibagger post their debut.

According to the market participants, renewable energy was turnout with investors flocking to capitalize on the solar boom. On the other hand, defence, aerospace, retail and financial services also delivered strong returns for the investors during the ongoing calendar.

The primary market trend might be encouraging more investors to participate in the IPO process, driven by the prospect of quick gains and short-term profits. However, the data from Sebi reveals that 55 per cent retail investors are exiting their positions with listing gains, underscoring the speculative nature of current market participation.

However, Siddharth Oberoi, Founder at Prudent Equity believes that the reality for most retail investors is far less lucrative, despite many IPOs in 2024 having posted solid gains as the actual allocation was just 1-2 per cent for small investors, leaving minimal impact on their overall portfolio. The key lies in position sizing and strategic asset allocation, he said.

"2025 is set to see a record number of IPOs, with new-age businesses continuing to emerge. For investors, this means an expanding universe of opportunities, offering access to sectors that were previously out of reach. The future looks bright as fresh avenues for growth open up in the market," Oberoi said.

According to market experts, favorable regulatory reforms and investor confidence fueled market momentum, even during downturns. Currently, the Indian market boasts a strong IPO pipeline with 34 companies having Sebi approvals to raise Rs. 41,462 crore and 55 firms awaiting clearance for Rs. 98,672 crore, with 143 DRHPs filed in 2024.

A recent report by Pantomath Group predicts record-breaking IPO fundraising in 2025, exceeding Rs 2 lakh crore. Mahavir Lunawat, Managing Director of Pantomath Capital projected equity raised through IPOs shall cross Rs 2 lakh crore in the 2025, fueling economic growth of India.