Fundraising through IPO has set a new milestone in the year 2024, surpassing the previous record set in 2021, with two months left in the current calendar year.
The cumulative amount of funds raised through the IPO so far in 2024 has crossed Rs 1.22 lakh crore. Which surpassed the previous record of Rs 1.18 lakh crore in 2021. Nearly 70 per cent of this record amount has been raised since August.
Around Rs 17,109 crore was collected through it in August, followed by a monthly record of Rs 11,058 crore in September and around Rs 38,700 crore in October. Previously, November 2021 held the record for maximum IPO fundraising of Rs 35,664 crore.
Meanwhile, four major IPOs (Swiggy, Segility India, ACME Solar Holdings and Niva Bupa Health Insurance) will take place in November with the aim of raising a total of Rs 19,334 crore. However, after several large IPOs in October, gains in the markets appeared to be slowing. Experts suggest that the lackluster performance of a major IPO, which failed to turn a profit on its first day, has weakened sentiment.
Hyundai’s three subsequent IPOs also traded negatively on their respective trading days. Garuda Construction & Engineering made a modest profit of around 12 percent at the time of listing, but is currently trading below its issue price. Currently, Hyundai is trading around 10 per cent below its issue price, while Deepak Builders & Engineers India, which is trading around 20 per cent below its issue price, is now trading around 23 per cent below of its issue price.
Waari Energies, which was expected to debut at a premium of 90 per cent, was trading at a premium of 59 per cent. With Swiggy set to launch its IPO next month, investor enthusiasm remains lukewarm. The gray market premium for this issue remains stable and analysts are warning investors due to its loss-making position and the perception that the IPO size is overvalued.
