The Thriving Domestic Primary Market in Samvat 2080
The domestic primary market has witnessed a remarkable surge in activity during Samvat 2080, captivating the attention of investors with a series of high-profile Initial Public Offerings (IPOs) and impressive market debuts. This vibrant atmosphere has been largely fueled by positive market sentiments, despite occasional fluctuations that have not deterred investor enthusiasm.
A Surge of Multibagger IPOs
In Samvat 2080, approximately 13 IPOs have emerged as multibaggers, with the standout performer being Motisons Jewellers, which has delivered an astonishing return of 444% since its debut. Other notable IPOs that have more than doubled investors’ wealth include Doms Industries, Jyoti CNC Automation, and Tata Technologies, each showcasing returns of 259%, 259%, and 111%, respectively. The success of these offerings has not only delighted investors but also underscored the potential for significant gains in the current market landscape.
Additionally, companies like Senco Bharti Hexacom, Suraj Estate Developers, and Platinum Industries have also made their mark, contributing to the overall positive sentiment. The IPOs of Protean e-Gov Technologies, Premier Energies, Exicom Tele Systems, and KRN Heat Exchanger have also been noteworthy, with their shares doubling in value from the listing day, further enhancing investor confidence.
A Robust Strike Rate
Out of the 76 IPOs that have hit the market this Samvat, an impressive 80% have managed to trade above their offer price. This statistic reflects a healthy appetite for new listings and a robust market environment that has encouraged companies to tap into public funding. The overall success of these IPOs has created a sense of optimism among investors, with many viewing the primary market as a lucrative avenue for investment.
The Big Players and Misses
This year also marked a significant milestone with India’s largest public offering from Hyundai India, which raised around ₹27,870 crore. However, despite its size, the debut was somewhat muted due to premium pricing and weaker-than-expected demand, resulting in the stock trading approximately 4% below its IPO price. Alongside Hyundai, 16 other IPOs, including Flair Writing, GPT Healthcare, and Baazar Style Retail, faced challenges in the market, with Capital Small Finance Bank experiencing the steepest decline, trading nearly 38% below its issue price.
A Promising Pipeline Ahead
Looking forward, the IPO pipeline for the second half of FY25 appears promising, with 26 companies seeking to raise ₹72,000 crore already sitting on the Securities and Exchange Board of India (SEBI) approval list. Additionally, another 55 companies are awaiting regulatory nods to raise approximately ₹89,000 crore. This year has already seen fundraising nearing ₹1 lakh crore, and expectations are high for this figure to reach new records by the end of March 2025.
The momentum in the IPO market is further evidenced by the fact that 15 companies filed draft prospectus papers on the last day of September, marking one of the most active periods for IPOs in over 14 years. This surge in activity indicates a robust confidence among investors, even amidst global uncertainties and market volatility.
Conclusion: A Bright Outlook
Despite the challenges posed by a fluctuating market and external economic factors, investor confidence in IPO offerings remains strong. The outlook for the capital markets appears bright, bolstered by a healthy pipeline of upcoming IPOs, strong investor demand, and a sense of optimism among both promoters and investors. Notable companies like Swiggy, Tata Capital, and HDB Financial Services are expected to launch their IPOs in the coming months, further enriching the landscape of the domestic primary market.
As the market continues to evolve, the successes and challenges of Samvat 2080 will serve as a testament to the resilience and potential of the Indian IPO landscape, making it an exciting time for investors and companies alike.