During the initial half of the fiscal year 2023–24, 31 Indian corporates raised over Rs 26,300 crore via main board IPOs, representing a 26% decline compared to the Rs 35,456 crore raised by 14 IPOs in the corresponding period of 2022–23, according to a report by Prime Database Group’s report.

Also read: Telecom Giants Reliance Jio And Airtel To Invest Rs 75,000 Cr On Network This Fiscal: JM Financials

Nonetheless, excluding the LIC IPO launched the previous year, IPO mobilization has surged impressively, marking a remarkable 76% increase compared to the previous year, the report said.

In the first half of 2022–2023, total public equity fundraising surged by 69% to Rs 73,747 crore from Rs 43,694 crore, according to Pranav Haldea, Managing Director, PRIME Database Group.

Overall, the public's reaction was largely favorable. Out of the 28 IPOs for which data is presently accessible, 19 of them garnered significant responses, surpassing 10 times oversubscription (with 9 IPOs exceeding 50 times oversubscription). Four IPOs were oversubscribed by over three times, and the remaining five saw oversubscription ranging from one to three times. 

Notably, the relatively new High Net Worth Individual (HNI) segment (Rs 2-Rs 10 lakh) displayed enthusiasm, with 17 IPOs receiving responses exceeding 10 times oversubscription, indicating a positive trend.

Retail investors exhibited notably higher enthusiasm compared to the first half of 2022–2023. In contrast to the 7.57 lakh applications in 2022–2023, the retail sector witnessed an average of 10.02 lakh applications. Ideaforge received the highest number of retail-related applications, totaling 22.29 lakhs, followed by Aeroflex with 21.62 lakhs, and SBFC Finance with 20.19 lakhs, as per the report.

Haldea noted that the IPO response received an additional boost thanks to the successful listing. When compared to the first half of the fiscal year 2022–23, the average listing gain (calculated based on the closing price on the listing date) surged to 29.44%, up from 11.56%. Out of the 28 IPOs that have been listed thus far, 20 have yielded returns exceeding 10%.

Also read: Sajjan Jindal-SAIC Deal: Here’s All You Need To Know About Alliance Terms With MG Motor India

“The pipeline continues to remain strong. 28 companies proposing to raise Rs 38,000 crore are presently holding SEBI approval while another 41 companies looking to raise about Rs 44,000 crore are awaiting SEBI approval (Out of these 69 companies, 3 are NATCs which are looking to raise roughly Rs 12,000 crore). According to Haldea, notwithstanding the present volatility in the secondary market, the next 4-5 months are likely to see several IPOs being launched before a pause on account of the general elections," said Prime Database Group in its report.