New Delhi: During the first half of 2024, India recorded the highest number of mainboard-listed companies globally, exceeding 5,450, which constitutes approximately 25 per cent of global IPO listings.
The global IPO market saw its peak in 2021. Nevertheless, India has continued to be an exception with a significant number of listings in the past year, driven by robust demand and domestic capital inflows, particularly in emerging sectors and companies, according to a report by ANI citing Angel One Wealth.
In 2021, the global markets experienced notable shifts in IPOs, with 2,388 companies raising USD 453.3 billion, the highest amount in the past two decades.
The report highlighted that nearly 178 companies filed for IPOs on stock exchanges, followed by China with 103, the US with 21, and the UK with 22.
The BSE IPO index achieved 348% absolute gains, significantly outperforming the benchmark BSE 500 index’s 165% gain, largely attributed to robust listing gains. Small and Medium Enterprise Initial Public Offerings (SME IPOs) have also shown impressive performance.
The average listing gains for SMEs have surged from 2 per cent in 2019 to 74 per cent in 2024, while the average listing gains for mainboard IPOs reached their peak in 2020 and have since remained around 30 per cent.
Retail and consumer product companies have been diversifying, while sectors such as industrial products, financial services, and healthcare have made efficient use of IPOs.
A report by the market regulator Sebi stated that there is a greater tendency among investors to sell shares from IPOs that report positive listing gains rather than those that incur losses.
Sebi’s analysis of investor behaviour in IPOs, which included data from 144 IPOs listed between April 2021 and December 2023, found that share returns significantly influence investor trading behaviour.