The financial year 2023 has been marked by an unprecedented surge in Initial Public Offerings (IPOs) in the Indian stock market. The first half of FY24 alone witnessed a record-breaking 31 IPOs, and the momentum is expected to continue with an additional 28 IPOs, collectively valued at ₹38,000 crore, scheduled for the second half of the fiscal year. Moreover, 41 more companies are awaiting SEBI’s approval for IPOs worth ₹44,000 crore.

Major IPOs on the Horizon

Several high-profile IPOs are expected to make their debut in the remaining months of FY24, with companies like Oyo, Tata Technologies, JNK India, Dom Industries, Apeejay Surrendra Park Hotels, Epack Durables, BLS E-Services, India Shelter Finance Corporation, Cello World, RK Swamy, Flair Writing Industries, Go Digit Insurance, and Credo Brands Marketing leading the way.

Tech Firms Leading the Charge

Among the upcoming IPOs, three new-age technology companies are collectively looking to raise ₹12,000 crore. Despite the current volatility in the secondary market, these tech IPOs are anticipated to proceed before a potential pause due to the general elections.

Oyo’s Anticipated IPO

Investor attention is particularly focused on Oyo’s IPO, with expectations that it could raise over ₹8,300 crore. The initial plan was to raise ₹8,430 crore, but there is speculation that the company may adjust its valuation and issue size.

Tata Tech’s Landmark IPO

Tata Group is set to launch its first IPO in 19 years with Tata Technologies, an operating subsidiary of Tata Motors. The IPO will comprise a 100% offer for sale of 811 lakh shares. Tata Technologies is a prominent player in automotive ER&D services, serving 35 original equipment manufacturers and 12 new energy players.

IPO Trends in H1 FY24

While the first half of FY24 saw a significant increase in the number of IPOs, the funds raised experienced a 26% decline, totaling ₹26,300 crore. Nevertheless, the number of issues more than doubled compared to the previous year, reaching 31 IPOs with a total fundraising of ₹35,456 crore. Overall public equity fundraising increased by 69% to ₹73,747 crore in H1 FY24 from ₹43,694 crore in the first half of FY23.

Summary

The Indian stock market’s IPO frenzy continues into the second half of FY24, with a diverse range of companies eager to tap into the market’s potential. While the fundraising landscape has faced some challenges, the strong demand for IPOs remains evident, setting the stage for an exciting period ahead in the Indian capital market.