Retail Applications in India’s IPO Market Surge in H1 FY24

The Indian Initial Public Offering (IPO) market has experienced a notable increase in retail applications during the first half of the fiscal year 2024 (H1 FY24). According to recent data, retail applications reached ₹55,516 crore ($7.4 billion), reflecting a remarkable 118% rise compared to the overall IPO mobilization.

In the previous fiscal year, ₹35,456 crore ($4.7 billion) was raised through 14 IPOs, which included a significant contribution from the Life Insurance Corporation’s IPO. This year, however, has seen fewer mega offerings of that scale.

Several companies, such as IdeaForge Technology, Aeroflex Industries, and Netweb Technologies, produced impressive returns on their listing days. This trend, coupled with recent reforms by the Securities and Exchange Board of India (SEBI), has been identified as a key factor driving the increase in retail applications.

Additionally, ₹26,300 crore ($3.5 billion) was raised through main board IPOs this season.

Looking to the future, industry experts anticipate a wave of IPOs in the next four to five months, although they expect a slowdown due to the upcoming general elections. It is estimated that 28 companies intend to raise ₹38,000 crore ($5 billion), while an additional 41 companies from Tier II and Tier III regions are seeking to raise around ₹44,000 crore ($5.8 billion).

This article was generated with the support of AI and reviewed by an editor.