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For India, 2024 has been the year of IPOs.
From Swiggy to Hyundai Motors and NTPC Green, India’s stock market has seen a number of blockbuster IPOs this year.
Dozens of companies put out successful public offerings.
Cumulatively, they have raised an eye-popping figure – over Rs 1 trillion.
Let’s take a closer look how 2024 was a banner year for IPOs in the stock market.
By the numbers
According to Business Standard, companies have raised over Rs 1,00,000 crore this year from IPOs.
This feat was previously achieved just once.
In 2023, that figure was at Rs 49,000 crore while in 2022 that number was 59,000 crore.
Companies previously hit it big in 2021 when they raised a massive Rs 1,19,000 crore from IPOs.
Of the 64 main IPOs, just a dozen witnessed their stock price slide under the issue price on listing day.
Just 15 stocks were trading below their IPO price till October.
It wasn’t just large companies raking it in either.
Small and medium enterprises (SME) also got on the act.
Over 200 of them raised Rs 7,700 crore and shattered last year’s record by 65 per cent.
SMEs raised Rs 4,600 crore in 2023 and Rs 1,875 crore in 2022.
The newspaper quote data from PRIME Database as showing that two dozen companies had received approval from the SEBI to raise another Rs 49,889 crore through IPOs.
Meanwhile, another five dozen or so companies were awaiting the SEBI’s nod to raise Rs 90,000 crore from IPOs.
Experts attributed the success of the IPOs to a variety of reasons including favourable conditions in the secondary market, ample liquidity, regulatory reforms, and increased transparency and enthusiastic investor participation, as per the newspaper.
Now let’s examine the biggest IPOs of the year and how they unfolded.
Hyundai Motor India Limited
Hyundai Motors comfortably had the biggest IPO of the year.
It raised a record Rs 27,870 crore during its IPO which opened on October 15 and closed on October 17.
The South Korean auto giant had fixed a price band of Rs 1,865 to Rs 1,960 per share for its IPO and even held a roadshow for its offering.
The IPO comprised an offer-for-sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC) with no fresh issue component.
The company had reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors or NIIs and 35 per cent for retail investors.
The IPO on its first day received an 18 per cent subscription – receiving bids for 1,77,89,457 shares against 9,97,69,810 shares on offer, as per NSE data.
However, by the final day of its offer, the share was oversubscribed 2.37 times – mainly on the back of institutional buyers.
This was the first IPO of an automaker in over two decades – following Japanese carmaker Maruti Suzuki’s listing in 2003.
Hyundai Motors comfortably surpassed the previous all-time record of Rs 21,000 crore offering by Life Insurance Corporation of India (LIC) in May 2022.
The shares listed at a price of Rs 1,931 on the BSE – 1 per cent lower than the issue price – before ultimately closing at Rs 1,820.
Analysts at the time cited several factors that could influence Hyundai’s listing.
Jaspreet Singh Arora, Chief Investment Officer at Equentis, told India Today the company’s limited exposure to the EV, hybrid and CNG market could be a major handicap – especially against its opponents.
“Hyundai operates in a highly competitive market where price cuts and incentives are common,” said Arora told India Today.
Vodafone Idea Limited
Vodafone Idea had the second biggest IPO of the year – raising Rs 18,000 crore from investors.
The company had listed a follow-on-public offer in April.
It previously offered a rights issue in 2019.
The offer had opened on April 18 and closed on April 22.
The company offered 1,636.36 crore shares for sale at a price band of Rs 11-Rs 12.
The issue was oversubscribed by nearly seven times after institutional investors poured funds into the company.
As many as 8,011.29 crore shares were sought, 6.99 times of the issue size.
The company received bids worth Rs 88,124 crore but retained Rs 12,600 crore as per the FPO offer size.
Qualified institutional buyers sought 19.31 times of the shares reserved for them, while non-institutional investors bid for 4.54 times of the shares earmarked for them. Retail investors, who were offered the biggest chunk, bid for just a tad more than the number of shares offered to them.
This was India’s largest ever FPO.
Before this, the record for the biggest ever FPO in the Indian market was a Rs 15,000 crore share sale by YES Bank in 2020.
The shares ultimately listed at Rs 12 on the BSE and closed at Rs 13.8 on April 25 – 26 per cent higher than the FPO price.
As per Financial Express, Aditya Birla Group chairman Kumar Mangalam Birla called it “fresh lease of life.”
“The robust engagement from both foreign and domestic investors is heartening. Notably, the full subscription of the retail portion is truly commendable, given the sheer scale of the offer,” Birla said.
But other experts were less than effusive.
“A lot of HNIs and retail investors had subscribed to the FPO with an arbitrage point of view,” Jimeet Modi, founder, Samco Securities, told Economic Times. “They have locked their gains and booked profits and moved on from the company.”
Swiggy Limited
Swiggy debuted its Rs 11,000 crore IPO in November.
The issue opened for public subscription on November 6 and ended on November 8.
The Bengaluru-based company was eyeing raising Rs 11,327 crore from the IPO – which comprised a fresh issue of 17.51 crore shares worth Rs 4,499 crore along with an offer for sale (OFS) of 17.51 crore shares worth Rs 6,828 crore.
The IPO ended with an oversubscription of 3.59 times.
Swiggy had set a price band of Rs 371 to Rs 390 per share for its IPO.
The company reserved 750,000 shares for employees – offered them at a discount of Rs 25 per share.
The shares listed on the stock market on 13 November.
Swiggy shares listed on the BSE at Rs 412 – a premium of nearly eight per cent against the issue price.
“The listing reflects a degree of optimism about Swiggy’s long-term growth prospects, driven by its strong brand recognition, extensive network, and dominant position in the food delivery market,” said Shivani Nyati, head of wealth at Swastika Investmart.
“However, the company’s continued losses and the challenging market conditions may temper investor enthusiasm in the long term,” Nyati added.
The company also made 500 of its employees crorepatis through the IPO and in total put Rs 9,000 crore in the hands of 5,000 employees under its Employee Stock Ownership Plan (ESOP).
Swiggy has allowed its employees to sell the shares a month after the IPO.
This, after it secured an exemption for the one-year mandatory waiting period from SEBI.
NTPC Green Energy Limited
NTPC Green Energy had India’s third-largest IPO in 2024.
The company, the renewable energy arm of NTPC, listed its public offering in November.
It raised Rs 10,000 crore through a fresh issue of 92.59 crore shares.
The allotment of the shares opened on 19 November and closed on 22 November.
The company set a price band of Rs 102 to Rs 108 per share.
It reserved 19.4 crore shares for employees – at a discount of Rs 5 per share.
The share sale was initially underwhelming on the first day – received bids for 19,46,53,968 shares against 59,31,67,575 shares on offer.
However, by the time the IPO ended on the final day of the sale, it was oversubscribed by 2.40 times.
The share was listed on the stock exchange on 27 November.
It listed at a premium – at Rs 122 on the BSE.
Shivani Nyati, Head of Wealth at Swastika Investmart, at the time told Business Today that while the company’s revenue and growth reliable, they were concerned about temporary fluctuations in profitability and margins
“The IPO’s valuation, based on the PE ratio, appears aggressive, which may limit immediate upside potential. Given the long-term growth prospects in the renewable energy sector and NTPC Green’s strategic position, this IPO was recommended for long-term investors. Short-term traders should remain cautious due to modest GMP signals and potential valuation concerns,” Nyati said.
Bajaj Housing Finance Limited
Bajaj Housing listed its Rs 6,560 crore IPO in September.
The issue opened for public subscription on September 9 and closed on September 11.
The company offered fresh issue of 50.86 crore shares worth Rs 3,560.00 crores and offer for sale of 42.86 crore shares worth Rs 3,000 crore.
The firm set a price band of Rs 66 to Rs 70 per share.
On the final day of the offer, the share was oversubscribed by 63.60 times in what was overwhelming demand from institutional buyers.
It listed at Rs 150 on the BSE on 16 September – a 114 per cent jump over the issue price.
The unit of non-bank lender Bajaj Finance drew investors due to its pedigree, an ongoing IPO euphoria and booming demand for luxury homes, analysts said.
“Magnificent subscription demand by breaking all records got listed as per our expectation. We believe Bajaj brand always rewarded investors and housing finance business give similar opportunity to invest in one of India’s leading players in the housing finance sector,” Prashanth Tapse, Senior VP (Research) at Mehta Equities, told Moneycontrol at the time_._
“They’ve done better than expected and the fact that it’s almost an hour of trading and they seem to be holding on to the price, which is great,” said Arun Kejriwal, founder of Kejriwal Research.
“The entry of the company in the listing also brings the number two and three players – LIC Housing Finance and PNB Housing Finance – in focus.”
Ola Electric Mobility Limited
Ola, the Bhavish Aggarwal-helmed company, held its IPO in August.
The Rs 6,145 crore issue opened to the public on August 2 and closed on August 6.
The Bengaluru-based company offered a fresh issue of 72.37 crore equity shares valued at Rs 5,500 crore and offer for sale of 8.49 crore shares worth Rs 645 crore.
The company reserved 797,101 shares for employees at a discount of Rs 7 per share.
The company fixed a price band of Rs 72 to Rs 76 per share for its IPO.
Day 1 of the IPO saw the Ola Electric Mobility shares subscribed 0.38 times.
By the final day of bidding, shares of Ola Electric were oversubscribed by 4.26 times.
The shares listed on the stock market on 9 August at Rs 76 on the BSE.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, told India Today at the time_,_ “While Ola Electric’s vision for the EV market is ambitious, the company’s current financial performance, marked by consistent losses, and the highly competitive landscape have tempered investor enthusiasm. The negative grey market sentiment prior to listing further reflected these concerns.”
However, by 18 August, the share had surged to Rs 133 – catching many by surprise.
“Despite our conservative view on EV penetration in India along with other uncertainties, we believe Ola is worth investing in given sustained regulatory support, Ola’s ability to reduce costs and a positive risk-reward in its battery venture,” HSBC Securities was quoted as saying by Economic Times.
Afcons Infrastructure Limited
Afcons Infrastructure had its IPO in October.
The flagship infrastructure engineering and construction firm of Shapoorji Pallonji Group’s raised 5,430 crores.
It offered a fresh issue of 2.7 crore shares worth Rs 1,250 crores and offer for sale of 9.03 crore shares valued at Rs 4,180 crores.
The subscription opened on October 25 and ended on October 29.
The company had fixed a price band of Rs 440 to Rs 463 per share
The firm reserved 596,659 shares for employees – a discount of Rs 44 per share.
The company received 10 per cent subscription on the first day of the IPO and a 36 per cent subscription on the day two of the share sale. By the final day of bidding, the IPO was fully subscribed.
The issue witnessed bids for 9,52,55,392 shares against the 8,66,19,950 shares available with retail investors subscribed at 52 per cent, qualified institutional buyers at 1.11 times and non-institutional investors (NII) oversubscribed by 2.42 times.
The share listed on the Indian stock market on 4 November.
Its debut price of Rs 430.5 on the BSE was seven per cent under the listed price.
However, that did not discourage analysts who advised investors to keep faith with the company for the longer term.
“Key strengths include strategic equipment investments, but challenges such as low PAT margins and reliance on government capex exist. While management focuses on long-term asset utilization, backed by Shapoorji Pallonji, investors should be aware of risks related to capex dependency and profit margins. We recommend subscribing to this issue for long-term gains,” Canara Bank Securities was quoted as saying by Economic Times.
“Accomplished numerous renowned infrastructure projects. Strong order book supports future growth. Stable financial performance over the years. IPO is reasonably priced. Long-term prospects look promising, but listing performance may be impacted by current market conditions,” added Swastika Investmart.
Waaree Energies Limited
Waaree had its IPO towards the end of October.
The company is a manufacturer of solar PV (photovoltaic) modules in India with an aggregate installed capacity of 12 GW (gigawatts).
The company raised Rs 4,321 crore from its IPO by offering a fresh issue of 2.4 crore shares valued at Rs 3,600 crore and an offer for sale of 0.48 crore shares worth Rs 721.44 crores.
The IPO opened for public subscription on October 21 and concluded on October 23.
The firm fixed a price band for its shares of Rs 1,427 to Rs 1,503 per share.
The company’s IPO was oversubscribed 3.29 times on the first day after a hearty response from non-institutional investors and a good response from retail investors.
The issue received over 6.9 crore consolidated share bids against 2,10,79,384 available shares.
The last day of the public offer saw incredible demand with the shares being oversubscribed 76.34 times. Investors bid for 160.91 crore shares – much higher than the 2.1 crore available on offer.
The shares were listed on the Indian stock market on October 28.
Waaree Energy shares debuted at Rs 2,550 on the BSE – an eye-popping premium of nearly 70 per cent compared to the listed IPO price.
“With solar energy emerging as a key global theme in the transition towards renewable energy, the company is poised to capitalise on the growing opportunity led by its strong track record, leading market share, strong financials, and continued focus on innovation and sustainability,” analysts at InCred Equities said their IPO note, as per Business Standard.
Bharti Hexacom Limited
Bharti Hexacom had its IPO in April.
Incidentally, this was the first public issue of the 2024-2025 financial year.
The Airtel subsidiary, which provides telecommunication services in Rajasthan and the Northeast, raised Rs 4,275 crore through its IPO.
The company’s IPO was entirely an offer-for-sale (OFS) of 7.5 crore equity shares, indicating a 15 per cent stake by Telecommunications Consultants India Ltd, with no fresh issue component.
The company set a price band for its shares of Rs 542 to Rs 570.
The bidding for the shares opened on April 3 and ended on April 5.
It reserved 75 per cent of the issue size for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
Bharti Hexacom was subscribed 34 per cent on Wednesday, the first day of the issue.
The final day of bidding saw the shares oversubscribed by 29.88 times.
The shares of the firm listed on the Indian stock market on 12 April.
It debuted at a price of Rs 755 on the BSE – a premium of 32.45 per cent.
Brainbees Solutions (Firstcry)
Brainbrees had its IPO in August.
Launched in 2010, FirstCry is India’s largest multi-channel, multi-brand retailing platform for mothers’, babies’ and kids’ products.
It was set up to create a one-stop destination for parenting needs across commerce, content, community engagement, and education, based on brand affinity, loyalty and trust of customers.
The Pune-based firm raised Rs 4,193 crore via a fresh issue of equity shares valued at Rs 1,666 crore and an offer for sale component of 5.44 crore shares worth Rs 2,528 crore.
The parent company of the e-commerce platform Firstcry set a price band of Rs 440 to Rs 465 per share.
The company reserved 71,258 shares for employees – at a discount of Rs 44 per share.
The firm opened for public subscription on August 6 and closed on August 8.
It was subscribed 11 per cent on the first day, receiving bids for 53,36,320 shares against 4,96,39,004 shares on offer – mostly from Retail Individual Investors (RIIs).
By the final day of the IPO, Brainbrees shares were oversubscribed by 12.22 times.
The company’s shares were listed on the Indian stock market on August 13.
Brainbrees shares debuted on the BSE at Rs 625 – a 34 per cent increase from its listed price.
Later, the shares surged to Rs 707 – a 52 per cent increase.
But Supam Maheshwari, cofounder and CEO of FirstCry, played it down.
Maheshwari told Economic Times, “Subscription, oversubscription, listing gains, do not matter much to me personally. What matters is this milestone of launching the IPO, which gives a feeling of accomplishment to all our families, and extended families. I am sure performance will always precede the outcome in terms of numbers on the stock market.
With inputs from agencies