The Indian IPO market is experiencing a golden age. Driven by a robust domestic economy and high investor confidence, it has become a launchpad for ambitious companies and a lucrative opportunity for eager investors.
This thriving activity is characterised by a substantial increase in the number of companies seeking to list their shares on the stock exchange, along with a corresponding rise in capital raised. This trend signifies a period of robustness and dynamism within the Indian financial landscape.
In the first half of the current calendar year, 35 companies from the mainboard segment have raised around ₹32,000 crore and were subscribed on average 61 times. These companies were from diverse sectors like co-working spaces, furniture retailing, and online ticket booking.
This period has remained action-packed for the new-age tech startups aiming to get listed on the Indian stock exchanges. Go Digit, Awfis, and TBO Tek made the headlines for their stock market debuts. From what the trends suggest, this is just the beginning of significant momentum that’s impending in the tech startup IPO space in the months to come.
The country is expected to witness some of the most noteworthy new-age tech IPOs this year, with the likes of Swiggy, Ola Electric, FirstCry, Ola Cabs, PayU, and MobiKwik forming a beeline for the Indian bourses, said domestic brokerage firm Asit C Mehta Investment Intermediates Limited (ACMIIL) in its latest report.
New funding frontier for global corporations
The Indian capital market is emerging as a prime destination for global corporations seeking public listings. Hyundai India plans to raise $3 billion through its IPO, potentially becoming India’s largest at a valuation of up to $30 billion. Similarly, LG is also preparing for a public listing in India, along with several other international companies.
The brokerage noted that the proposed IPOs of Hyundai India and LG could set a precedent for many more multinational companies with significant market shares in India that are still unlisted to consider listing in the Indian markets.
Retail investors are driving the rally
Retail investors, buoyed by a strong secondary market and easy access through online platforms, are actively subscribing to offerings, often leading to significant oversubscription, ACMIL noted.
This trend shows that domestic investors remain bullish on India’s solid growth story amid the prospects of policy continuity, pro-growth government measures, benign inflation, and the start of the interest rate cut cycle.
The brokerage pointed out that the country’s strong macro environment has raised investor confidence, and the healthy performance of several new stocks in the last couple of years has also lured investors into investing in new IPOs.
