Analysts see no reason for IPOs to slow down

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Over the past couple of years, the Indian stock markets have performed spectacularly. Dozens of companies have taken advantage of the buoyant bourses and peppy investors to raise money from the market through IPOs.

This year so far, different companies have raised $400 crore so far making India the second-largest IPO market in the global league. Now with NDA back to form the next govt, the lined up IPOs could take place in the rest of the year, analysts told The Times of India.

Between January and May of this year a total of 113 IPOs hit the market.

“Amidst general elections, the primary market remained vibrant with the solid response to certain IPOs like Awfis Space Solutions. Confidence can be gauged by these offerings that have been launched amidst elections… Looking ahead, the market is set to witness a flurry of IPOs, from new-age business as well as from conventional business segments,” Mahavir Lunawat, MD of investment bank Pantomath Capital Advisors, told the newspaper.

Incidentally, the $400 crore raised in India through IPOs is about 45% less than what it collected in all of 2023, LSEG Data & Analytics shows.

Still the amount mopped up in this country is more than that in China which collected $300 crore and in Saudi Arabia where $210 crore was raised.

The collection from India is also far higher than the cumulative quantity mopped up in South Korea, Turkey and Hong Kong.

The US is the largest IPO market in the world. This year companies have raised $1,400 crore from the US. The market for IPO in India has boomed to such an extent that India which was at 11th position in 2019, rose to third place in 2023 after the US and China.

Some of the prominent companies that are planning to float IPOs in the next few months in India are Hyundai Motor India, Tata Capital, Ola Electric Mobility, Swiggy and NSDL.