The year 2023 will go down in history as a bonanza year for initial public offerings (IPOs) on Dalal Street. A deluge of companies tapped the primary market through IPOs, enriching investors with windfall gains.
A total of 57 mainboard IPOs were launched on the BSE and NSE this year along with 182 IPOs by small and medium enterprises (SMEs) on the SME platforms. The response from investors was overwhelming, with most issues getting heavily oversubscribed. Out of the 57 mainboard IPOs, 47 ended their listing day with gains while 141 SME IPOs closed higher on day one.
The IPO frenzy also highlighted the evolving objectives of companies accessing capital markets. Nearly 42% of the total funds raised – Rs 20,648 crore out of Rs 49,351 crore – was mobilized as fresh capital for business needs. Last year this figure stood at Rs 17,659 crore.
Private equity players also cashed out this year via IPOs, raising Rs 7,783 crore. Concord Biotech, RR Cables and Honasa Consumer topped the PE exit chart.
In terms of subscriber interest, Motisons Jewellers IPO was the most sought-after, garnering massive 160 times overall subscription. Tata Technologies gave the highest listing pop of 140% among mainboard IPOs this year. For investors, IREDA gave the most bountiful returns post-listing, to the tune of 230%. Meanwhile, IRM Energy turned out to be the most disappointing performer with an 8% decline from the issue price.
The stage looks set for the IPO fiesta to continue in 2024 as well, with around 65 proposals awaiting SEBI approval. After the revelry this year, Dalal Street awaits another vibrant season of public issues.