2024: A year of IPO boom as retail interest zooms

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Subscribe to enjoy similar stories. 2024 has been a landmark year for the Indian initial public offer (IPO) market, with an unprecedented surge in fundraising and retail participation. The allure of quick wins has led to massive oversubscriptions, especially in the small and medium enterprises (SME) segment.

Strong listing gains have further fuelled this frenzy. While foreign investors have pulled back from the secondary market, they continue to show interest in the primary market. With over ₹1 trillion worth of IPOs in the pipeline, the outlook looks promising.

However, the sustainability of this momentum amid potential market volatility remains a key question. IPO activity in India has hit a new record this year with a staggering ₹1.4 trillion raised through both main-board and small and medium enterprises (SMEs) segments. It was also the year of big deals with the average IPO size doubling to nearly ₹1,800 crore, signalling a surge in investor confidence and paving the way for even larger deals to come.

Also read: IPO lottery: Did your lucky pick weather the Q2 storm? The recent wave of primary market offerings has captivated investors, who have responded overwhelmingly. While over a third of the mainstream IPOs saw a bumper response with subscriptions of over 50 times, the SME segment, in particular, outdid its larger counterparts, with nearly 70% of issues receiving this level of mega response. Retail investors are taking the IPO market by storm.

Their enthusiasm has led to record-breaking activity and a new era for both main-board and SME offerings. That said, the odds of securing allocations have also dwindled due to this overwhelming demand. IPO response was further buoyed by strong listing performance.