The shortfall was mainly on account of the high base due to the mega LIC IPO, which took place last year. Barring this, IPO mobilisation increased by 76% in the first half of this year from the last.
However, average listing gains increased to 29.44% in the first half. It was 11.56% in the same period of 2022-23. As many as 27 of the 28 IPOs that were listed so far in the first half are trading above the issue price, prime database data showed.
Ideaforge topped the charts with a stupendous return of 93%, followed by Utkarsh Small Finance Bank at 92% and Netweb Technologies at 82%.
The largest IPO in the first half was from Mankind Pharma (Rs 4,326 crore), followed by JSW Infrastructure (Rs 2,800 crore) and RR Kabel (Rs 1,964 crore).
At the other end, the smallest IPO was from Plaza Wires raising just Rs 67 crore. The average deal size was Rs 848 crore. As many as 21 out of the 31 IPOs came in just 2 months of August and September.
While there have been companies from multiple sectors tapping the IPO market in the last six months, one key sector which was missing in action was BFSI with just Rs 1,525 crore or 6% being raised, compared to 61% in the same period last year.Just 1 (Yatra Online) out of the 31 IPOs was from a new age technology company, pointing towards a continuing slowdown in public offers from this sector.
Of the 28 IPOs for which data is available, 19 received a mega response of more than 10 times, while 4 were oversubscribed by more than 3 times.
In the anchor investors’ segment, domestic mutual funds played a slightly more dominant role than FPIs. Anchor investors had their subscription amounting to 15% of the issue amount, while that of FPIs was at 14%.
What is in store for the second half?
The pipeline for the second half looks promising with 28 companies proposing to raise Rs 38,000 crore are presently holding Sebi approval, while another 41 companies looking to raise about Rs 44,000 crore are awaiting the same.
Of these 69 companies, three are new-age looking to raise roughly Rs 12,000 crore.
“Notwithstanding the present volatility in the secondary market, the next 4-5 months are likely to see several IPOs being launched before a pause on account of the general elections,” said Pranav Haldea, MD, PRIME Database Group.
SME segment
Activity in this segment saw a huge increase in the first half of FY24 with 97 SME IPOs collecting a total of Rs 2,731 crore, 140% higher than Rs 1,137 crore from 63 IPOs in the same period last year.