2024 Market Outlook: Kotak Investment expects more fairly valued IPOs, balanced returns

V Jayasankar, Managing Director and Board Member of Kotak Investment Banking expects a lot more action in the initial public offerings (IPO) space in 2024 with greater participation from large caps and more fairly priced issues. He believes the returns in the new year will be more balanced than last year.

"This year, I think the returns will probably be a lot more balanced compared to 2023. Nevertheless, I anticipate investors to continue making significant profits in 2024. The key shift we observe is that IPOs are now getting fairly priced, marking a crucial learning from the market dynamics of the CY21 cycle."

In calendar year 2023, IPOs on average returned close to 30% on the first day of listing and approximately 45-50% by the end of the year, noted Jayasankar, adding that these remarkable returns, creating a buyer's market, primarily driven by small and mid-cap offerings.