India’s IPO market is witnessing a remarkable surge this year, with September marking the highest activity yet. The month saw 12 mainboard IPOs, collectively raising over Rs 11,000 crore, and 39 small and medium enterprises (SMEs) adding another Rs 1,542 crore. This makes it the most active month for SME IPOs in the last decade. Analysts expect the trend to continue with upcoming big-ticket listings like Hyundai and Swiggy.
According to analysts, strong liquidity, retail participation, and resilience in the economy cause the boom. Most of the IPOs this year have given stellar returns after their listing. Analysts say that markets may enter the late-cycle phase, with inflated valuations leading to post-issue corrections. Ajay Bagga, an independent analyst, said promoters and institutions could cash out once the retail investors jumped in, which in turn results in losses in case of late entrants.
In the same period, 62 companies raised Rs 64,485 crore through IPOs, while 204 SME firms together garnered Rs 6,959 crore. Over 40 new filings in September alone, the India IPO market will be busy in the second half of FY2025.
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Source: Moneycontrol
News Desk
