Indian primary market has reported a record-breaking number of initial public offerings (IPOs) filing in a single day, with as many as 17 companies (main board and SME) submitting their draft red herring prospectuses (DRHPs) with the capital market regulator, Securities and Exchange Board of India (SEBI) on September 30. This is the most number of DRHP filings in a single day.
The list includes Dev Accelerator, Scoda Tubes, All Times Plastics, Solarworld Energy Solutions, Jaro Institute of Technology Management and Research, Vikran Engineering, MIDWEST, and 10 others.
In September, as many as 28 main board companies filed their IPO documents with the SEBI, which is also the second-most in terms of monthly DRHP filings after 34 in September 2010. Overall, the total number of filings in the first nine months of the year crossed 120, and given the strong pipeline, this year is on course to create many new records.
So far this year, 62 main board companies have raised ₹64,485 crore via IPO route till September, including ₹11,032 crore by 12 companies last month, as per primedatabase.com. This is the highest in terms of volume since 2007, when 100 companies garnered ₹34,179 crore through IPOs.
Going ahead, the pipeline remains strong as some big companies, including Hyundai Motor India, Swiggy, and NTPC Green Energy are lined up with their IPOs over the next two months to raise around ₹60,000 crore. Out of this, Hyundai Motor India (HMI), which recently received the green signal from the SEBI, is planning to launch its ₹25,000 crore IPO before Diwali, which is touted to be India’s largest public issue, surpassing the record ₹20,557 crore raised by the state-owned insurer Life Insurance Corporation (LIC) of India in 2022. Among others, NTPC Green Energy plans to raise ₹10,000 crore, while Swiggy is eyeing to garner around ₹11,000 crore.
According to a recent report, India topped the global IPO market, with 227 issues (main board and SME) totalling $12.2 billion in the first eight months of 2024, primarily due to a higher number of SME IPOs. Other factors that contributed to the strong IPO number are a strong market sentiment, a favourable macro environment, and a surge in investor interest fuelled by fear of missing out (FOMO). The U.S. came in second with 133 deals of $23.1 billion while China ranked third with 69 transactions worth $5.3 billion. China’s IPO market, dwindled 8% in deals, affected by both structural and cyclical constraints, as per data and analytics company, GlobalData.
The IPO market underwent a significant uptick in activity in 2024 as macroeconomic conditions stabilized, says Murthy Grandhi, company profiles analyst at GlobalData. "The Indian IPO market saw exceptional growth in the first eight months of 2024, with proceeds nearly tripling to $12.2 billion, compared to $4.3 billion during the same period in 2023. This significant increase highlights India’s strong capital market activity.”
In addition, a noticeable shift has been observed in investor focus over the past two years, with greater emphasis is being given to the financial sustainability and profitability of newly listed companies. "Companies planning for IPOs are increasingly prioritising revenue growth, profitability metrics, and sustainable business strategies," Grandhi says, adding that it reflects a broader trend towards long-term financial resilience and responsible growth.
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