When compared to FY23, the number of initial public offerings (IPOs) in the primary market increased significantly in the fiscal year 2024. The increase in domestic investors in an otherwise bull market contributed to the robust demand for shares. Large subscriptions and strong market moves were observed on the listing days of the majority of initial public offerings (IPOs) in the fiscal year 2024. In FY24, the S&P BSE IPO index increased by 69%.
Out of the 78 initial public offerings (IPOs) listed in the fiscal year 2024, 13 stocks - including Indian Renewable Energy Development Agency Ltd (IREDA), Signatureglobal (India) Ltd, Netweb Technologies India Ltd, Motisons Jewellers Ltd, Cyient DLM Ltd, Azad Engineering Ltd, Senco Gold Ltd, Mankind Pharma Ltd, JSW Infrastructure Ltd, Concord Biotech Ltd, Tata Technologies Ltd, Jyoti CNC Automation Ltd, and BLS E-Services Ltd - provided investors with multibagger returns.
IREDA is the second public sector undertaking (PSU) to join the main market, after Life Insurance Corporation (LIC). IREDA's share price surged by 324.7% from its IPO price of ₹32 in FY24.
A new issue of up to 40.32 crore shares and an offer for sale (OFS) of up to 26.88 crore equity shares made up the ₹2,150.21 crore IREDA IPO. Since being public, the stock has been rising, and it is off to a fantastic start for the upcoming fiscal year, 2025.
IREDA said on Tuesday that it has recorded the highest-ever annual loan sanctions and disbursements for the fiscal year 2023–2024. The company sanctioned and disbursed loans of ₹37,354 crore and ₹25,089 crore in the fiscal year 2023–2024. The price of IREDA shares was then trapped in a 5% upper circuit.
In second place on the list is Signatureglobal (India), which has increased its value by 253% from its ₹385 IPO price. The corporation has been concentrating on purchasing real estate and selling opulent residences. Real estate developer Signature Global sold 1,008 premium flats for more over ₹3,600 crore in its brand-new Gurugram building, despite a price rise in March. This suggests strong consumer demand. It bought 20 acres of land in Gurugram with the plan to develop a residential complex with a potential income of ₹4,500 crore.
Third place on the list goes to Netweb Technologies, which had a 221.5% return from its ₹500 IPO price. Fourth on the list is Motisons Jewellers, which had a 191.0% increase from its IPO price of ₹55. The current surge in gold prices, which has hit all-time highs, has raised demand for gold investments through various gold investments in India. About eight and a half percent (CYTD) more gold was sold, according to Bloomberg, right before the summer wedding season and the lucky Akshaya Tritiya, when demand for jewelry and coins is often highest.
Cyient DLM, ranked fifth on the list, increased 171.8% from its IPO price of ₹265. Cyient DLM reported a 25.8% sequential rise in net profit in the October–December quarter of the fiscal year 2023–2024, reaching ₹18.44 crore. Revenue for the firm in Q3 FY24 was ₹321 crore, up 10% QoQ from the previous quarter's reported ₹292 crore.
According to Vinit Bolinjkar, Head of Research at Ventura Securities, 76 businesses raised money through initial public offerings (IPOs) in FY24, up 19% from FY23. In comparison to FY23, the total amount of money obtained through IPOs increased by 19% to ₹61,915 crore. Nonetheless, compared to the preceding two years, the average transaction size for initial public offerings (IPOs) fell in FY24, indicating a trend toward smaller businesses going public. The majority of the firms that listed on the market saw favorable returns, making FY24 a successful year for IPOs.
