Parul
The IPO pipeline for 2024 continues to remain strong. According to the Prime Database analytics of the IPO market, 27 companies proposing to raise Rs 28,500 crore are presently holding SEBI approval while another 36 companies looking to raise about Rs 40,500 crore are awaiting SEBI approval. Talking about the IPO momentum in 2024, Pranav Haldea, Managing Director, PRIME Database Group predicts that the next couple of months should see several IPOs being launched before a pause on account of the general elections.
2023 saw 87 companies filing their offer document with SEBI for approval (in comparison to 89 in 2022). On the other hand, 2023 also saw 40 companies looking to raise nearly Rs 70,000 crore letting their approval lapse, three companies looking to raise Rs 3,550 crore withdrawing their offer document and SEBI returning the offer document of a further six companies looking to raise Rs 10,800 crore.
According to Haldea, IPO response was further buoyed by strong listing performance. Average listing gain (based on closing price on listing date) increased to 29 per cent, in comparison to 11 per cent in 2022.
Of the 57 IPOs, 40 gave a return of over 10 per cent. Tata Technologies gave a stupendous return of 163 per cent followed by Ideaforge (93 per cent) and Utkarsh Small Finance Bank (92 per cent). 53 of the 57 IPOs are trading above the issue price (closing price of January 1, 2024) with an average return of 46 per cent.
