Record-Breaking 41 IPO Filings : September 2024 Sets New Milestone
41 IPO Filings in September : In September 2024, a record-breaking 41 companies submitted their IPO (41 IPO Filings) offer documents to the Securities and Exchange Board of India (SEBI), marking the highest number ever recorded in a single month, as reported by Axis Capital.
Currently, a total of 67 companies have filed their Draft Red Herring Prospectus (DRHP) and are awaiting regulatory approval, while one company remains in the confidential pre-filing stage. Major players planning to go public in the upcoming months include NTPC Green, Hexaware Technologies, Vikram Solar, Aditya Infotech, Varindera Construction, Vikran Engineering, and Mauri Tech, reflecting growing business confidence across sectors in accessing capital markets and indicating strong investor demand and a healthy IPO pipeline.
IPO Performance in FY2024 : Strong Returns and Investor Confidence
Among the 239 IPOs listed during this period, 175 debuted at a premium, 10 opened at their issue price, and 33 initially listed below the issue price but subsequently recovered to close above it by September 30, 2024. Furthermore, as of September 30, 183 IPOs continued to trade above their issue price, demonstrating positive market sentiment.
In FY2024 alone, 41 IPOs have been listed (41 IPO Filings), with 35 of them currently trading above their issue price—highlighting a consistent performance trend and showing sustained investor interest and confidence in new market entries.
Lucrative Gains for Retail Investors
IPOs have proven to be a lucrative opportunity for retail investors, delivering an average listing gain of 27% across 236 analyzed IPOs. By the end of September 2024, the cumulative gains had surged to an impressive 114%. Data from the market regulator reveals that individual investors sold 50% of the shares allotted by value within the first week of listing, while 70% of the shares were sold within a year. Retail investors largely sold shares that yielded positive gains at listing but held onto shares that initially listed at a loss. Notably, when IPO returns exceeded 20%, investors sold 67.65% of shares by value within a week, compared to just 23.3% for IPOs that delivered negative returns.
Impact of Regulatory Changes on Market Dynamics
The regulatory changes introduced by SEBI in April 2022, particularly those concerning the Non-Institutional Investor (NII) share allotment process, along with the Reserve Bank of India’s (RBI) guidelines on IPO financing by Non-Banking Financial Companies (NBFCs), have significantly impacted market behavior.
The average oversubscription rate in the NII category has dropped from 38 times to 17 times. Additionally, applications from “big ticket” NII investors—those applying for over Rs 1 crore in IPOs—have plummeted from an average of 626 per IPO prior to the policy changes to just 20 per IPO after the implementation of the new regulations.
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