India Poised to Become the Largest IPO Market in the World
HDFC securities
HDFC securities is one of the leading stock broking companies in India, and a subsidiary of HDFC Bank.
During the calendar year 2023, nearly $6 billion worth of Initial Public Offerings (IPO) took place. By the end of 2024, the number is said to double by $12 billion.??
Major companies such as Swiggy, Bajaj Housing Finance, Afcons Infrastructure, Ixigo have already gone public. This momentum is triggered by strong macro fundamentals of India that is leading to large retail participation in IPOs.??
With all these factors in place, India is poised for a huge amount of retail participation showcasing strong growth potential.??
Given that millions of retail investors flocking to invest in IPOs, India has emerged as the second largest IPO market in the world. A record 84 companies have gone public so far in 2024, and 24 more companies are all set to go public in the next few months.??
2021 saw a record number of IPOs rounding up to 1035. Taking a macro view, India’s growth in the global stage is driving this momentum, primarily triggered by financial inclusion across the nation.?
Latest and Upcoming IPOs?
Ixigo went live latest on June 18, 2024, which outperformed market expectations by listing more than 10 percent of projections. Similarly, more IPOs are coming up and most of them are expected to outperform the expectations. Interestingly, they all represent niche industries.??
Some of them include, Stanley Lifestyles, Akme Fintrade, GEM Enviro, Durlax, and Falcon Technoprojects India. With an increasing focus on financial inclusion, infrastructure projects and the need for specialized products/services are pushing positive expectations on these IPOs.?
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The Foray of New-Age Giants?
Bajaj Housing Finance is expected to have an INR 7000 crore IPO soon. This will provide a major boost to the market and subscriptions are likely to surpass expectations. Similarly, Ola Electric Mobility coming into the picture, too, will create ripple effects, as the focus of Indian government on electric mobility will reflect on the success of this IPO.?
New Government and Budget?
With the new government in place, soon a full budget is expected in July 2024. This means, more exciting spends on infrastructural projects will be determined, followed by emphasis on social security schemes. States like Bihar and Andhra Pradesh are expected to get special status too, which might trigger more infrastructure and social security spending in the state.?
In Conclusion?
The average Indian investor was in dilemma about the stock market. But now the perception is changing and SEBI is coming up with measures to protect the interest of retail investors. With more IPOs coming up, it is important to stay updated. HDFC Sky's one-click IPO feature enables ease of investment for all users and offers up to date information on all upcoming IPOs.?
Sources:??
Associate Project Manager at RWS
5 个月Good to know!