The Indian stock market has been on a roll this year, smashing records one after another to reach historic highs. This has been a record year for new investors, with almost every month seeing an addition of more than 1 million new investors.
The primary market is not far behind, despite the fact that the secondary market is in the limelight. The going has never been so good for initial public offers IPOs.
More than 50 companies have tapped the stock markets to raise a total amount of more than 1 trillion or 1.03 lakh crore in the current calendar year.
This is the first time that total fund raising has breached the 1 trillion mark in a single calendar year. The previous high was in 2017 when a total of Rs 67,147 was registered. According to Prime Database, 44 crore were raised by 36 companies.
The total amount of 43 issuances raised a cumulative amount of 73,523 in the current year. There were 82 crore till October, while the current month has already seen as many as eight issues that raised a total of nearly 29,600 crore.
In March only saw a higher number of IPOs when a total of nine firms launched their public issues.
The high-profile public issue of One 97 Communications, the parent of the digital payment and ecommerce giant Paytm, raised around 18,300 crore in the current month.
In November, there was another digital major policybazaar that launched its IPO to raise Rs 5,625 crore. The IPO of Star Health and Allied Insurance Company, which will raise around 7,250 crore, is one of the companies that have tapped the market in the current month.
Market participants attribute the buoyancy in the primary market to a combination of factors, including a strong rally in the secondary markets Indian benchmark indices are among the best performing globally this year entry for new investors looking to invest in stocks, falling interest rates and a flood of start-ups coming to the markets.
While online majors like Nykaa, Policybazaar, Zomato and Paytm are already listed, the coming days will see ventures like Ixigo, Pharmeasy, Delhivery, MobiKwik and Oyo start their public issues listed on the bourses.