The Indian IPO market continues to flourish, having witnessed an unprecedented 31 initial share sales in the first half of FY24. The robust trend is expected to persist, as 28 companies are actively planning to raise around Rs 38,000 crore in the latter half of the fiscal year.
On the other hand, 41 companies are awaiting approval from the Securities and Exchange Board of India (SEBI) to launch their initial public offerings (IPOs), with a combined value of Rs 44,000 crore, as per a report by PTI.
Despite a significant increase in the number of IPOs from 14 to 31 in the first half of the current fiscal year, the total funds raised through these IPOs saw a decline of 26 per cent to Rs 26,300 crore. This contrasts with the previous year when the total funds raised amounted to Rs 35,456 crore, indicating a challenging fundraising environment for IPOs in the current fiscal period.
Several known names will be making their entry in the initial share sale segment in the coming months of this fiscal year like Tata Technologies, Oyo, Flair Writing Industries, DOM Industries, Apeejay Surrendra Park Hotels and others.
Among the companies gearing up to make their debut on Indian bourses, three new-age technology firms are planning to raise a consolidated funding of Rs 12,000 crore, as revealed by Pranav Haldea, Managing Director of Prime Database in a statement to PTI.
He further added, that notwithstanding the present volatility in the secondary market, the next half is likely to see several IPOs being launched before a pause on account of the general elections.
As the Indian economy continues to demonstrate resilient performance, coupled with a strong track record of successful IPOs, the fundraising environment may continue to be favorable for companies seeking capital infusion.