The year 2023 marks the return of TATA Group stocks in the primary market with the Tata Tech IPO after nearly 20 years. And it was a strong comeback as the shares listed at Rs. 1200 on the NSE against an issue price of Rs. 500.

Tata Tech broke records, and the IPO was oversubscribed 69.43 times on the final day, with over 73.6 lakh applicants investing around Rs. 1.57 lakh crores. Not just that, the IPO doubled investors’ wealth by listing at a 140% premium.

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Remember those things from back in the day that seemed like a dream to buy, such as the iconic DOMS products and other items that hold countless memories, like Cello World? Well, today, instead of buying their products, we invest in their IPOs.

We’re sure many 90s kids can relate to this!

And that’s not all! Get ready for the biggest upcoming IPOs (Estimated Prices) like OYO (Rs. 8.4K crore), NSE (Rs. 10K crore), Swiggy (Rs. 8.3K crore), Navi (Rs. 3.3K crore), Boat (Rs. 2K crore), PharmEasy (Rs. 6.2K crore), Mobikwik (Rs. 1K crore), and more.

After a bit of a snooze in the IPO market for the past two years due to the Ukraine war and inflation crisis, it looks like we’re gearing up for a massive comeback. 

What is an IPO?

Initial Public Offering, or IPO, is when a private company sells its shares to the public for the first time to raise equity capital from the investors without bringing in fresh funds from the private investors. It can be a new, young, or old company deciding to be listed on an exchange, making it a public company.

So, an IPO basically turns a privately held company into a public company, opening up investment opportunities for the general public and earning returns on that investment.

Is India experiencing an IPO boom? What does this indicate?

India’s IPO market has made a strong comeback this year, making it the global leader in the number of IPOs so far in 2023 and attracting investors to take advantage of the renewed interest in public offerings on Dalal Street.

Despite global economic uncertainties, India’s stock market has seen a remarkable increase in IPO activity in recent years, showcasing a strong belief in the Indian economy.

The growing subscriptions in IPOs also indicate that company owners or promoters are looking for larger capital to support their growth plans, and investors are showing a positive response to such opportunities.

A significant factor driving this IPO surge is the active involvement of retail investors, often leading to oversubscriptions like that of the Tata Tech IPO, indicating a rising interest in stocks among retail investors as well as reflecting the confidence of business owners in the future success of their companies and their trust in the Indian market’s ability to support their growth goals.

This trend is expected to continue well into the second half of 2024.

What do the numbers tell about IPOs?

In the last three years, main board IPOs have shown impressive strength. The year 2023 stands out as a record-breaking year with the highest number of IPOs in a decade. While this surge is driven by listings on SME exchanges, the main board offers (listings on NSE and BSE) are the second-highest in the last 10 years.

NSE, BSE SME Exchanges
YearNumber Fund Raised ($ Billion) NumberFund Raised ($ Billion)
201330.15350.04
201450.14400.03
2015211.63430.03
2016263.18670.06
2017368.061330.2
2018243.711411.47
2019161.48510.07
2020153.19270.02
20216314.25590.09
2022407.121090.22
2023464.931560.48

Source: Prime Database and Bloomberg
The 2023 data is for IPOs launched till November 28

Redseer predicts that by March 2025, India will probably have somewhere around 40 IPO-ready startups. However, it’s important to remember that not all IPOs are successful, and India has seen some big IPO failures in the past two years

Written By Shivani Singh

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