IPO Market Activity Analyzed

Key Points

• 332 companies went public in Samvat 2081, raising ₹1.55 trillion.
• Mainboard IPOs raised ₹1.41 trillion, SMEs ₹1.14 trillion.
• Big IPOs: HDB Financial, LG Electronics, Tata Capital, Swiggy, NTPC Green Energy.
• Many mainboard IPOs trading below listing price, showing investor weakness.
• SME segment performance is better, with more companies above offer price.
• Valuations are stretched; liquidity is tight, impacting investor returns.

The Big Numbers

In Samvat 2081, a lot of companies decided to go public. A total of 332 companies raised a huge amount of money – ₹1.55 trillion! This is like a giant wave of companies offering shares to the public for the first time.

Most of this money, around ₹1.41 trillion, came from companies that listed on the ‘mainboard’ – that’s the biggest part of the stock market. The other 235 companies listed on a smaller part called the ‘SME segment’. This was a record amount of money raised in one year, and it’s like a lot of companies were trying to get their shares bought by investors.

Some of the biggest IPOs were HDB Financial Services (raised ₹12,500 crore), LG Electronics India (₹11,607 crore), Tata Capital (₹15,511 crore), Swiggy (₹11,327.43 crore), NTPC Green Energy (₹10,000 crore), Vishal Mega Mart (₹8,000 crore), and National Securities Depository which garnered ₹4,010.95 crore through its IPO.

How Did They Do?

However, not all these IPOs did perfectly. Many companies listed on the mainboard are now trading for less than they started at. This means investors who bought those shares are seeing their investment value go down.

About half of the mainboard IPOs (49 out of 97) are below their initial listing price. This shows investors aren’t as excited about these companies as they were when they first went public. But, 67 of the companies are trading *above* their initial offer price, which is good news!

The smaller SME segment did better, with more than half of its IPOs trading above their initial price. This suggests that investors were more confident in these smaller companies.

What’s Going On?

Experts say that companies were asking for too much money, and there wasn’t much money available to buy all those shares. This is called ‘stretched valuations.’ Also, there wasn’t much liquidity, meaning some big investors were selling their shares, which made it harder for the stock prices to go up.

One big expert, Chokkalingam, noticed that the market was doing really well before the IPOs, which led to a lot of money being raised. He says that if companies don’t give investors good returns, people won’t be interested in buying their shares.

Looking Ahead – Samvat 2082

Experts expect even *more* companies to go public in the next year (Samvat 2082), with around 200 companies aiming to raise about $35 billion (₹2.9 trillion). Most of these will be smaller IPOs, with only a few big ones, like Wakefit Innovations, Lenskart Solutions, and Cleanmax Enviro Energy Solutions, expecting to raise significant capital.

It’s important for companies to have realistic plans and strong business models to keep investors interested. Until things change, it might be a tough time for getting great returns on IPO investments.

The key to a successful IPO is not just raising money, but building a business that investors can trust and believe in.