It is noticeable that even though the Indian stock market has been volatile after a strong 18 months, the majority of companies are still standing strong to launch an IPO. Moreover, 34 companies received approval from SEBI to launch an IPO to raise Rs 41,462 crore and 55 companies are waiting for approval from the Securities and Exchange Board of India to raise Rs 98,672 crore. These companies might launch an IPO after one year.
It catches the eye that this 2024 year has had an outstanding performance in raising money from IPOs compared to the last two years. In addition, in 2023, 57 IPOs raised Rs 49,435 crore, and in 2022, 40 IPOs raised Rs 59,301 crore. In 2024 around 143 Draft red herring prospectuses have been submitted to SEBI, which is an increment in contrast to the last two years, 84 DRHP had filed in 2023 and 89 were in 2022, Therefore various companies like Zepto, Flipkart, Indira IVF, and HDFC Credila are expected to file for IPOs soon. Moreover, according to sources, Indira IVF plans to raise $400 million, while Zepto, Flipkart, and HDFC Credila each aim to raise over $1 billion.
Furthermore, due to surges in IPO enhancing stock market performance, this current year both Nifty and Sensex increased by 13%, building on a 20% rise in 2023.
Rajesh Palviya from Axis Securities is confident that the IPO targets can be met” means that Rajesh Palviya believes the goals for the upcoming IPOs are achievable and will likely be reached.
There are varied IPOs in line such as HDB Financial Services at 12,500 crores, LG Electronics India at 15,000 crores, NSDL at 4,500 crores, Dr. Agrwal’s Healthcare at 3,500 crores, Hexaware Technologies at 9,500 crore, Ather Energy at 4,500 crore, JSW Cement at 4,000 crores and Hero Fincorp 3,600 crore.
Experts believe that, despite short-term problems like geopolitical issues, weak corporate earnings, a slowing economy, and foreign money leaving the markets, the long-term situation of the stock market will be satisfactory, however poor quality IPOs will suffer, and substantial and good financial performance IPOs will likely attract the interest of investors.
