Indian IPO Market Booms in First Half of 2024, Defying Election Year Trends

Indian IPO Market Booms in First Half of 2024, Defying Election Year Trends

A Robust IPO Market in 2024

The Indian IPO market has witnessed a remarkable surge in the first half of 2024, defying the typical slowdown observed during election years. A total of 37 companies across diverse sectors have successfully raised nearly Rs 32,000 crore, marking the second-best performance ever after 2022's record-breaking year.

This year's performance surpasses even the peak of the 2007 bull market, when 54 companies raised Rs 20,833 crore. Excluding the mammoth LIC IPO, 2024 emerges as the best year for the IPO market in terms of both the number of issues and the amount raised.

This robust activity stands in stark contrast to previous election years, which typically witnessed a lull in IPO activity. The 2019 first half saw only eight firms raising Rs 5,509 crore, while 2014 and 2009 witnessed even fewer issues.

Analysts attribute this year's success to several factors, including greater certainty about the election outcome, policy continuity, and strong investor sentiment. Domestic mutual funds have played a significant role, pumping over Rs 1.85 trillion into domestic stocks this year.

Among the notable IPOs, Bharti Hexacom raised the largest amount (Rs 4,275 crore), followed by Aadhar Housing Finance (Rs 3,000 crore). The financial sector dominated, accounting for a quarter of the total capital raised.

Looking ahead, bankers anticipate a brief pause before the Union Budget, but the pipeline remains strong with marquee names like Swiggy, Hyundai India, and Ola gearing up for their IPOs. The IPO market is poised for continued momentum in the latter half of 2024.