IPO market booms as blockbuster listings draw investors to newly listed stocks
Indian primary markets in 2023. In the initial months, we saw a muted atmosphere, but as time unfolded, so did the narratives. In recent months, the number of IPO listings has surged remarkably.
Comparing the current year's IPOs with the preceding year’s, the numbers tell a totally different story. In 2022, 90 companies made their debut including both small and medium enterprise (SMEs) and mainboard segments. Fast forward to 2023, and we have 101 IPOs that are already listed, and we still have one month to go.
The journey started with 8 IPOs combined in January and February 2023. March marked a turning point with 11 IPOs as markets picked up pace. However, a dip followed in the months of April and May, with less than 7 IPOs each month.
From June 2023, demand resurged and has remained resilient till date. What sets 2023 apart is that there were no blockbuster IPOs like the LIC IPO with an issue size of 210 billion (bn). In fact, 2023 had a quieter trend with focus on companies from the tier-2 cities.
To understand this better, let’s look at some numbers. You see, till October 2023, 36 mainboard IPOs were listed. These IPOs collectively raised over ₹270 bn.
Approximately half of these (18 IPOs), came from companies located in tier-2 cities like Yatra Online, Signature Global, Utkarsh Small Finance Bank, and Cyient DLM, among others. Until October 2023, 36 mainboard IPOs went public, and together they raised more than ₹270 billion. What's interesting is that 18 of these companies, like Yatra Online and Utkarsh Small Finance Bank, are from tier-2 cities.
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