Be ready to earn through IPO in 2024, many companies are going to enter the market
During 2023, a total of 59 IPOs have raised an amount of Rs 54 thousand crore from the market. In the last trading session on December 29, the average return of all these IPOs was around 45 per cent. There are 24 companies which have received approval from SEBI to launch IPOs. Apart from this, 32 other companies have submitted draft documents to SEBI to launch IPOs.
Retail investors have made huge profits through initial public offerings (IPOs) during the calendar year 2023. A total of 59 IPOs were listed in the market last year. They have given an average return of 26.3 per cent on the day of listing compared to their issue price. Retail investors can earn through IPO in 2024 also. The reason for this is that this year also many companies are ready to launch IPO.
According to the data of Prime Database, there are 24 companies which have received approval from SEBI to launch IPOs. These companies want to raise Rs 26 thousand crore through IPO. It is believed that considering the strong economic data, performance of previous IPOs and record rise in the markets, these companies can launch their IPO only in 2024.
Apart from this, 32 other companies have submitted draft documents with SEBI to launch IPOs. These companies want to raise Rs 35 thousand crore from the market through IPO. If they get approval from SEBI, they can also launch an IPO this year.
2.7 crore new investors are expected to join the market during 2023. Neha Aggarwal, Head of Equity Capital Market at JM Financial, says that the outlook for the IPO market in 2024 is very strong. This optimism is driven by strong domestic and foreign investment, indicating improved growth prospects for Indian markets. The flow is expected to accelerate further once the election-related uncertainties are resolved.
During 2023, a total of 59 IPOs have raised an amount of Rs 54 thousand crore from the market. In the last trading session on December 29, the average return of all these IPOs was around 45 per cent. On this day, only four out of 59 IPOs closed with a decline compared to their issue price. Out of 59, there were 23 IPOs which have increased by 50 percent since their listing and nine IPOs have increased more than double. The BSE IPO index has gained 41 per cent during 2023, thanks to the tremendous rise in mid- and small-cap stocks.
Last year, the IPO of the Indian Renewable Energy Development Agency (IREDA) had the best performance. IREDA's shares surged 221.3 per cent from the issue price of Rs 32 per unit on the day of listing. On December 29, it closed with a gain of 204 per cent over the issue price. Similarly, the shares of Tata Technologies increased by 136 per cent compared to the issue price on the day of listing. Investors' wealth has increased by Rs 81.90 lakh crore during the entire 2023.
Last week, due to the rise in the domestic stock markets, the market capitalization of eight of the top 10 companies listed on BSE increased by Rs 1.29 lakh crore. During this period, the capitalization of HDFC Bank increased the most by Rs 29,828.84 crore.
After this, the capitalization of LIC has increased by Rs 25,426.49 crore. Apart from this, the capitalization of Bharti Airtel, HUL, Reliance Industries, ITC, SBI and ICICI Bank has also increased. At the same time, the capitalization of TCS and Infosys has decreased.
