IPO Rush: in 2023, 54 of the 59 deals had 45% returns; just 4 were trading below the issue price
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| IPO Rush: in 2023, 54 of the 59 deals had 45% returns; just 4 were trading below the issue price |
Nine of the 59 issues had a profit on the issue price more than double, while 23 of the 59 issues saw a rise of more than 50% after listing.
IPO investors laughed themselves silly as 55 out of 59 issues acquired them at a 45 percent premium in a year when major market benchmarks reached new highs and surged by about 20 percent, making investors wealthier by nearly Rs 82 lakh crore. produced outstanding profits. average proportion.
According to exchange statistics, 2023 turned out to be a profitable year for primary market investors as 59 firms went public, collecting an impressive Rs 54,000 crore and averaging profits of over 45% above the issue price.
As a result, almost two-thirds of the firms surpassed the benchmark indexes, which have increased by around 20% this year.
Only four of the 59 main-board IPOs are trading lower the issue price in the December trading session. The average offering gain for all 59 IPOs is 26.3%, and as of December 29, their average gain is 45%. 29.
Nine of the 59 issues had a profit on the issue price more than double, while 23 of the 59 issues saw a rise of more than 50% after listing.
The Indian Renewable Energy Development Agency (IRDAI), a little-known company, has performed the best, up 221.3% at its listing price of Rs 32 on November 29. Up till December 29th, Irdia provided a return of 204%. With gains of 140.7 percent (over the issue price of Rs 500) as well as 154.5 percent (over the issue price of Rs 265), respectively, Cyient DLM and Netweb Technologies come next.
The second-best performance is Tata Technologies, an FPO that saw a three-fold increase at the issue price of Rs 500 on the day of listing and is now up more than 136%. A real estate participant, Signature Global, has returned 128 percent of its Rs 385 listing price.
With 240 issues generating over USD 60 billion, Dalal Street became the second best in the world behind China as a result of this listing frenzy.
Strong macroeconomic fundamentals, stable politics, a positive outlook for corporate profitability, indications from the US Federal Reserve about three potential rate reduction in the next year, and significant involvement from individual investors, according to analysts, should all contribute to this year's stock market surge. had a significant part in.
This year, the market saw the entry of around 27 million new investors.
Massive foreign cash inflows, which totaled Rs 1.7 lakh crore in the year, are one way to overcome all of these obstacles.
The strong increase in mid- and small-cap companies has allowed the BSE IPO index to rise by 41% so far this year.
In percentage terms, record market activity—59 main-board issues and 182 SME issues—means that the overall number of initial public offerings (IPOs) in 2023 increased by 55.8% year over year, the greatest rate in the world.
Dalal Street has achieved another significant milestone in terms of market capitalization because to the indexes' gain. Its market capitalization has risen by about US$1 trillion to US$4.3 trillion, or Rs 370 lakh crore, up nearly 30% year over year for the eighth consecutive year. of financial gain.
Due to favorable variables that caused equities to climb spectacularly in 2023, investors gained an additional Rs 81.90 lakh crore in wealth. Conversely, investors saw a gain of Rs 16.38 lakh crore in 2022, as the BSE Barometer recorded a 4.44 percent gain for the year.
The Sensex touched an all-time high of 72,484.34 on December 28 after plunging to a 52-week low of 57,084.91 on March 20 of this year. Over the course of the year, the BSE bellwether had monthly increases in eight cases and decreases in the other four; the greatest increases occurred in November and December, accounting for 4.87 percent and 7.83 percent, respectively.
