New Delhi
The month of September saw a significant rise in Initial Public Offerings (IPOs), with 41 companies submitting their IPO offer documents to the Securities and Exchange Board of India (SEBI). Companies such as NTPC Green, Hexaware Technologies, Vikram Solar, and Aditya Infotech were among those filing, reflecting increased interest in capital markets.
By the end of September, 67 companies had filed their Draft Red Herring Prospectus (DRHP) with SEBI, awaiting approval. Out of 239 IPOs listed during this period, 175 opened above their issue price, 10 listed at the issue price, and 33 initially listed below their issue price but later recovered.
A strong market sentiment was observed, with 183 IPOs continuing to trade above their issue price by September 30. In the fiscal year 2024, 40 IPOs were listed, and 35 of them were trading above their issue price. Retail investors gained significantly, with an average listing gain of 27 per cent, which rose to 114 per cent by the end of September.
SEBI’s findings showed that 50 per cent of shares allotted to individual investors were sold within the first week of listing. SEBI’s policy changes in April 2022 impacted Non-Institutional Investor (NII) oversubscription rates, which fell from 38 times to 17 times, and large NII applications also declined.
