17 september 2024 : India’s Initial Public Offering (IPO) market has emerged as a strong outlier, defying global trends of subdued public issues. A report by Angel One Wealth highlighted that while the global IPO market peaked in 2021, India has continued to witness strong demand, supported by domestic inflows and emerging sectors.
In the first half of 2024, India accounted for 25% of global IPO volumes and now boasts the highest number of mainboard-listed companies globally, with over 5,450 firms. While global markets saw a boom in 2021, India’s IPO market maintained momentum into 2024, despite a slowdown elsewhere.
In 2023, India led with 178 new stock market listings, followed by China (103), the US (21), and the UK (22). The BSE IPO index gained 348%, significantly outperforming the BSE 500 index’s 165% rise. Small and Medium Enterprises (SME) IPOs, in particular, saw listing gains soar from 2% in 2019 to 74% in 2024, while mainboard IPO gains stabilized around 30%.
Key sectors driving these IPOs included consumer products, retail, diversified industrials, financial services, and healthcare. Additionally, a study by SEBI revealed that investors showed a strong disposition effect, selling shares with positive listing gains more readily than those with losses.
