About 76 companies accessed the public markets in FY24, raising nearly Rs 62,000 crore through mainboard IPOs. This is 19% higher than the Rs 52,116 crore mobilized by 37 companies in 2022-23, according to primedatabase.com.
However, excluding the mega LIC IPO that came out in 2022-23, IPO mobilisation increased by 58% from the last fiscal.
The overall public equity fundraising, including from FPOs, OFS, and other avenues, increased by 142% to Rs 1.86 lakh crore in FY24 from Rs 76,911 crore in FY23.
While FY24 saw companies from varied sectors tapping the IPO market, BFSI had a limited presence, with just Rs 9,655 crore being raised by companies from this sector. This accounts for about 18% of the total IPO fundraising, compared with 51% in FY23.
After a flurry of tech startup IPOs in the last two fiscal years, there were few and far between in FY24. Only three new-age companies Yatra, Mamaearth, and Zaggle hit the markets in the reporting year.
Of the 75 IPOs, 54 IPOs received a mega response of more than 10 times (of which 22 IPOs more than 50 times), while 11 IPOs were oversubscribed by more than three times. The balance of 10 IPOs was oversubscribed between one to three times.
In comparison to FY23, the response of retail investors increased tremendously. The average number of applications from retail increased to 13.17 lakh, compared to 5.57 lakh in the preceding year.
The highest number of applications from retail were received by Tata Technologies (52.11 lakhs) followed by DOMS Industries (41.30 lakhs) and INOX India (37.34 lakhs).
The public offer of Mankind Pharma was the largest of the fiscal year 2024, which mopped up around Rs 4,326 crore, closely followed by Tata Technologies at Rs 3,043 crore and JSW Infrastructure at Rs 2,800 crore.
Apart from the big ticket names, more smaller companies than in the last two years came up with their IPOs. The average deal size of IPOs was reduced significantly to Rs 815 crore in comparison to Rs 1,409 crore in 2022-23 and Rs 2,105 crore in 2021-22.
Listing gains
In line with the subscription demand, listing gains didn’t disappoint investors. The average listing gain increased to 29%, during the year against 9% in FY23.
Vibhor Steel gave a stupendous return of 193%, followed by BLS E-Services (175%) and Tata Technologies (163%). 51 of the 75 IPOs are trading above the issue price with an average return of 65%.
