The Indian IPO market has shown remarkable activity in 2024, with a total of 313 IPOs launched across the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as of October 1st. This surge in public offerings reflects a robust appetite for new listings and investor confidence in the Indian economy, despite global economic uncertainties.
As of October 1, 2024, the NSE has seen 198 IPOs, with 49 on the Mainboard and 149 in the Small and Medium Enterprise (SME) segment. The BSE has recorded 115 IPOs, split between 60 Mainboard and 55 SME listings. This represents a significant increase compared to the entire year of 2023, which saw 171 IPOs on the NSE and 120 on the BSE.
The market response has been overwhelmingly positive, with more than 80% of IPOs on both exchanges showing gains on their issue dates. Out of 115 BSE issues, 102 were positive, while 163 out of 198 NSE IPOs saw gains. This trend indicates strong investor confidence and a bullish outlook on newly listed companies.
Best and Worst-performing IPOs of the year
The IPO landscape of 2024 has seen both remarkable successes and notable disappointments. At the top of the list, Vibhor Steel Tubes IPO stands out with an astounding 181.46% listing gain. This impressive performance stems from the company’s strong position in the steel industry and positive market sentiment towards infrastructure-related stocks.
Following closely, BLS E-Services IPO achieved a 125.93% listing gain, indicating investor confidence in the e-governance and digital services sector. Premier Energies IPO rounds out the top three with a 120% listing gain, reflecting growing interest in renewable energy companies.
Conversely, the IPO market also witnessed some underperformance. R K Swamy IPO experienced the most significant loss on listing at -13.19%. This poor performance could be attributed to concerns about the advertising industry’s outlook or company-specific issues. Gopal Snacks IPO also disappointed investors with a -12.47% listing gain, possibly due to competitive pressures in the snack food market.
Interestingly, some IPOs that initially struggled have shown resilience in their long-term performance (LTP). For instance, while JG Chemicals IPO had a -5.43% listing gain, its LTP shows a 75.90% increase, suggesting improved investor sentiment over time.
Overall, the 2024 IPO market demonstrates the importance of thorough research and cautious optimism when investing in newly listed companies. While some IPOs have delivered exceptional returns, others serve as a reminder of the inherent risks in the stock market. Consequently, investors should carefully consider factors such as industry trends, company fundamentals, and broader economic conditions before participating in future IPOs.
Top 6 Best-Performing IPOs of 2024
Also read…
Top 6 Worst-performing IPOs of 2024
Conclusion
The robust IPO activity in 2024 underscores the Indian market’s resilience and growth potential. With a diverse range of companies going public and strong investor participation, the trend is likely to continue, providing opportunities for both issuers and investors in the evolving landscape of Indian capital markets. However, it’s important to note that past performance doesn’t guarantee future results, and investors should conduct thorough research before participating in any IPO.
Written by Fazal Ul Vahab
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.
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