Is the IPO Boom of December 2024 the Start of a Major Trend?

December 2024 will go down in history as a landmark month for public offerings. With fifteen companies launching their IPOs and collectively raising an astounding ?25,425 crore, it became the most lucrative December since 1996 in terms of funds raised. Notably, this month was second only to December 1996 for the number of IPOs.

?? Key Highlights:

- Vishal Megamart: ?8,000 crore

- International Gemological Institute: ?4,225 crore

- Mobikwik Systems: ?572 crore

- DAM Capital Advisors: ?840 crore

December is typically slow for IPOs due to challenges in securing FPI support during the holiday season. However, since 2021, this trend has shifted, with domestic institutions driving the market's momentum.

In 2024, domestic institutions and FPIs were significant net buyers, with a combined investment of ?6.5 trillion in primary markets, while they were net sellers in secondary markets.

?? What's Driving the Change?

- Strong domestic institutional flows

- Attractive IPO pricing despite valuation concerns in secondary markets

- Confident subscription numbers due to positive momentum

2024 also shattered records across the board, with 91 companies raising ?1.6 trillion through mainboard IPOs and 240 firms raising ?8,757 crore through SME platforms. This surpassed previous records, making 2024 an unprecedented year for IPOs.

?? Let's Discuss:

- How do you think this shift towards domestic investor-driven IPOs will shape the market in 2025?

- What are your predictions for the next big IPOs?