Indian IPO market to witness 13 new issues next week
What's the story
The Indian initial public offering (IPO) market is set for a record-breaking week, with 13 new IPOs scheduled to launch. This surge in activity is one of the largest clusters of IPO offerings, seen in a single week this year. The upcoming IPOs are expected to raise approximately ₹8,644 crore, reflecting strong investor confidence in India.
Market division
Mainboard and SME segments to see new IPOs
Out of the 13 new IPOs, four will be launched in the mainboard segment, including the highly anticipated Bajaj Housing Finance. The Small and Medium Enterprises (SME) segment is set to witness nine new issues. This division indicates a balanced distribution of new offerings across different market segments, catering to a wide range of investors.
Investor participation
Market buoyancy and liquidity bolster market
The current market buoyancy is driven by broad investor participation, with retail buyers eager to capitalize on attractive listing gains. This enthusiasm is fueled by the strong performance of the secondary market, with Nifty up by 15.71% in the current calendar year to date. Robust liquidity among both domestic and foreign institutional investors, has significantly bolstered the IPO market pipeline.
Sector attraction
IPO offerings from high-growth sectors attract investors
Analysts say that most recent IPO offerings are emerging from high-growth, sunrise sectors, thus attracting investors anticipating strong growth potential. This trend is tipped to continue through the rest of 2024 and may extend into 2025. Nirav Karkera, Head of Research at Fisdom, stated, "The market environment seems favorable for several upcoming IPOs to finally make their debut on the bourses."