India’s IPO market has been a key driver in the country’s booming financial landscape, with investors keen on exploring new opportunities for growth. In recent years, the IPO market has seen significant activity, with companies from various sectors aiming to tap into the expanding retail investor base. IPOs provide businesses with capital to scale while offering investors a chance to get in early on potentially high-growth companies. As the Indian economy has continued to expand, the stock market has become a hotspot for new listings, with 2023 and 2024 marking a particularly active period for IPOs.
Indian IPO Market Performance in 2023 and 2024
The IPO market in India during 2023 and 2024 saw remarkable performance, driven by strong domestic consumption, investor optimism, and an overall favorable economic environment. Several IPOs across diverse sectors, such as technology, infrastructure, renewable energy, and consumer goods, generated significant investor interest. Companies like Netweb Technologies, Tata Technologies, and IRDEA performed exceptionally well post-listing, providing returns to investors. This surge in IPO activity reflected growing confidence in the Indian economy, which was supported by a booming retail investment culture and a favorable regulatory framework.
Let us dive in to the analysis of the IPOs for 2023 and 2024.
Analysis of Mainline IPOs Listed on the Indian Stock Market in 2023 and 2024
Thus, of the IPOs raised during 2023 and 2024, 37 companies have given over 50% returns i.e. approx. 25% of the IPOs have given over 50% returns in the last two years. On the other hand, 44 companies have given negative 20% returns i.e. approx. 30% of the IPOs have given negative 20% returns. This sharp contrast emphasizes the volatile and uncertain nature of IPO performance.
Top 5 performing IPOs which have delivered over 100% returns since issue:
Worst 5 performing IPOs which have delivered over 20% negative returns since issue:
IPO Activity Comparison: 2023 and 2024 vs. Previous Years
In contrast to the bustling IPO scene in 2023-2024, the year before saw a notable slowdown in IPO activity. In 2022, global uncertainties, including inflationary pressures, geopolitical tensions, and market volatility, caused many companies to delay or even cancel their IPO plans. As a result, fewer companies went public, and the IPO market was relatively quiet compared to the following year’s surge.
This shift from a subdued 2022 to a vibrant 2023-2024 highlights the cyclical nature of the IPO market, where external factors like global economic conditions, investor sentiment, and regulatory changes can significantly impact the number of IPOs. The contrast between these two years emphasizes the resilience of India’s stock market, which bounced back strong with an increased number of listings, showcasing the country’s robust financial ecosystem.
Impact of Market Volatility on the Indian Stock Market and IPOs from October 2024 Onwards.
A total of 30 IPOs launched post Sept till Dec 2024. Of these 5 IPOs delivered over 50% returns since issue and 13 IPOs gave negative returns i.e. nearly 43% IPOs launched post Sept 2024.
The Indian stock market has seen a range of impacts from September 2024 onwards due to various global and domestic factors. Here’s an overview of key developments:
Market Volatility and Correction: From September 2024 to March 2025, the Indian stock market experienced significant volatility. The market faced corrections due to geo-political uncertainties, weakened GDP growth expectations, Heavy FII withdrawal along with stretched valuations. This led to declines across Market caps and indexes.
Impact on IPO Market: The market downturn impacted IPOs launched post-September 2024. Several IPOs, which were expected to perform well, faced lower-than-expected subscription rates. Some stocks listed below their issue prices, reflecting the caution among investors during this period.
Slower Economic Growth: The ongoing global economic pressures, coupled with domestic factors, contributed to slower economic growth projections for the short term. This, in turn, influenced investor sentiment, leading to reduced participation in the equity market.
Government Policies and Global Events: Global market events like geopolitical tensions affected investor outlook.
In summary, from September 2024 onwards, the Indian stock market experienced volatility and some correction, with IPOs facing challenges due to lower investor confidence. However, certain sectors remained relatively resilient.
Conclusion:
The Indian IPO market in 2023 and 2024 showcased a diverse range of performances, with several companies experiencing significant success while others struggled to meet market expectations. There were some notable success stories which underline the importance of strong fundamentals, solid business models, and the ability to capitalize on growing sectors. These companies benefitted from clear growth trajectories, robust investor interest, and favourable market conditions.
On the flip side, there were some underperforming IPOs which highlight that IPO success is not guaranteed. Companies that failed to live up to expectations often did so due to overvaluation, lack of differentiation, or weak financials, pointing to the risks of investing in IPOs without thorough due diligence.
Hence, Investors need to focus not just on the hype around IPOs but also on the underlying strength of the business model, the financial health of the company, and market trends. Investors need to have a well-defined understanding of their financial situation and investment strategy.
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The article is authored by Ms. Palak Jobalia from Team RichVik