New Delhi, March 26 (IANS) – Overall public equity fundraising soared by 142 per cent to Rs 1.86 lakh crore in 2023-24 from Rs 76,911 crore in 2022-23. According to Pranav Haldea, Managing Director of Prime Database, 76 Indian corporates raised Rs 61,915 crore through main board IPOs in the financial year 2023-24, marking a 19 per cent increase from the previous year’s Rs 52,116 crore.
The largest IPO in 2023-24 was from Mankind Pharma at Rs 4,326 crore, followed by Tata Technologies at Rs 3,043 crore and JSW Infrastructure at Rs 2,800 crore. The response from the public was excellent, with 54 IPOs receiving a mega response of more than 10 times, and 51 of the 75 IPOs trading above the issue price with an average return of 65 per cent.
The response to IPOs was further boosted by their strong listing performance, with an average listing gain of 29 per cent in comparison to 9 per cent in 2022-23. Vibhor Steel gave a remarkable return of 193 per cent, followed by BLS E-Services at 175 per cent and Tata Technologies at 163 per cent. A total of 96 companies filed their offer document with SEBI for approval, with 37 companies seeking to raise nearly Rs 59,000 crore.
The pipeline for IPOs remains strong, with 19 companies holding SEBI approval to raise nearly Rs 25,000 crore, and 37 companies awaiting approval to raise about Rs 45,000 crore. Despite the upcoming general elections, the next few months are expected to see the launch of some IPOs. QIPs also saw a significant increase, with 55 companies raising Rs 68,933 crore in 2023-24, compared to Rs 9,019 crore in the previous year.
Of the total equity mobilisation of Rs 1,86,108 crore, fresh capital amount accounted for Rs 1,25,267 crore, while the remaining Rs 60,840 crore was offered for sale. The QIPs were dominated by Banking and Financial Services companies, accounting for 58 per cent of the overall amount. The market for public equity fundraising in India is showing signs of robust growth and investor interest, with companies looking to capitalise on the positive sentiment in the market.
(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)
