HOT OR HYPE?

India's 2024 IPO market sizzles with investor cash, but will it be a blockbuster or a box office flop? Valuation worries linger

India’s IPO market is experiencing a phenomenal year in 2024. Companies are aiming to raise over ₹1 lakh crore through IPOs, which is more than double the amount raised in 2023 (₹49,434 crore). This growth is driven by a rise in approvals and filings, with 28 companies seeking to raise over ₹30,000 crore and an additional 36 companies expressing interest through DRHP filings with SEBI (indicating their intent to raise over ₹50,000 crore), according to primedatabase.com.

The average IPO size is also expected to jump to $250 million in 2024, compared to $100 million in 2023, potentially reaching a total issuance volume of $10 billion to $12 billion.

HIGH-PROFILE DEBUTS ON THE HORIZON

The year 2024 is set to witness several high-profile IPOs, including OYO, PayU, Aakash Educational Services, NSDL, Ola Electric, and Swiggy. Notably, Ola Electric, the first electric vehicle (EV) start-up to file a DRHP, paves the way for other EV companies to potentially enter the public market.

Adding to the list of anticipated IPOs, food delivery giant Swiggy is eyeing a $1 billion public offering later this year. Similarly, online education start-up Byju’s plans a $1 billion IPO for its tutoring arm, Aakash Educational Services, slated for later in 2024. Digital payments major PayU and National Securities Depository Ltd (NSDL) are also expected to join the IPO rush, aiming to raise ₹5,000 crore and ₹4,000 crore, respectively.

FACTORS DRIVING THE BOOM

Thriving Secondary Market And Strong Investor Appetite

A thriving secondary market and strong investor appetite are propelling the resurgence in India’s IPO market. The year began impressively, with Dealogic data showing 21 IPOs raising $678 million in January, a significant jump compared to the previous year.