The year 2023 will certainly be remembered for the rush of companies that brought their offers on Dalal Street, the exceptionally strong subscription numbers, and of course the listing high. But it was also the year that saw a big change in the intent behind taking companies these companies public.
Before we speak about the change, let’s take a look at the year 2023 for the Indian primary market.
A total of ₹49,351 crore was raised through the primary market in the calendar year 2023. Interestingly, it was still 17% lower as compared to the funds raised in the previous calendar year which was 2022.
Another interesting statistic, the total fund raised in the current calendar year was nearly 60% lower than the highest-ever fund raised of ₹1.18 lakh crore which was in the year 2021.
On one hand, where the fundraising was lower than the previous year, the number of listings grew significantly, which also means the average funds raised for IPOs did come down.
The year 2023 saw a total of 57 companies getting listed on exchanges which were higher by over 40% as compared to the previous year but nowhere close to the best year in the history which was 1995 which saw about 1,341 companies getting listed on exchanges.
Now let’s speak about the change in the intent. This year, out of the total fundraising, 42% or ₹20,648 crore was raised for fresh capital which generally gets used towards, growth, capex, or deleveraging.
This compares to 30% or ₹17,659 crore as fresh capital out of total fundraising in calendar year 2022. The share of offer for sale out of the total fundraise in 2023 stood at 58% versus 84% in 2022.
Since we are talking about the offer for sale, this year is the list of companies where private equity players sold big through IPOs in 2023. Private equity players raised a total of ₹7,783 crore through IPOs this year and almost half of it came in mankind pharma. This was followed by companies like Concord Biotech, RR Kabel, Honasa Consumer or Mamaearth.
Now let’s talk about the subscription cheer. Motisons Jewelers became the highest subscribed IPO receiving a subscription of 160x. Tata Technologies gave the best listing gains this year of about 140%.
If one moves beyond the first day, the first show. then IREDA stock has given the best returns out of all the companies listed this year. IREDA has given its investors returns of nearly 230% so far. The biggest disappointment this year has been IRM Energy. the stock is down about 8% this year.
This was 2023 but 2024 also looks promising for the primary market with 24 companies already having received Sebi approval for their IPO. These 24 companies will look to raise ₹28,440 crore.
There are also about 30 companies waiting for Sebi’s approval for their IPO. If these public issues were to materialize then 2024 would be the best in the last three years for the Indian primary market.
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