INCREASING TREND- FLOODGATE OF IPOs in 2023

Summary

The year 2023 boomed with the release of various IPOs of the Indian Companies in the Primary Market. The Indian Share Market has noticed a record-breaking increase in the accumulation of funds through the Initial Public Offering. The last six months of the year have been flooded with the Public Offering of Various Indian Companies. Around 223 IPOs have been launched in the year and the number have shown an increase of 48% from the last year. This percentage increase in the IPO shows the balance in an Indian Economy.

INCREASING TREND- FLOODGATE OF IPOs IN THE YEAR 2023

The year 2023 boomed with the release of various IPOs of the Indian Companies in the Primary Market. The Indian Share Market has noticed a record-breaking increase in the accumulation of funds through the Initial Public Offering. The last six months of the year have been flooded with the Public Offering of Various Indian Companies. Around 223 IPOs have been launched in the year and the number have shown an increase of 48% from the last year. This percentage increase in the IPO shows the balance in an Indian Economy.

WHAT IS AN IPO?

Firstly, before delving into the details of various IPOs which were released in the year 2023 and how it has impacted the Global Market Economy, let us first come and get to know the general meaning of an IPO. IPO stands for the Initial Public Offering, basically IPO is the method of generating fund for the company from the general public. IPO are those shares which were hold by the company in the name of their promoter/group of promoters or a company can also Issue a fresh lot of shares in order to generate funds. The IPOs are released by the companies in order to achieve certain objective such as Expanding or increasing the Business Operation of the Company, Payment of the outstanding loans or dues of the company, to meet the daily working capital expenses of the company and various other reasons. This is what generally an IPO means and the reason for its Issuance, now let us look at various data related to the IPO for the year 2023 and how the Indian Market have been bombarded with various IPOs.

FUND RAISED THROUGH INITIAL PUBLIC OFFERING

Till date, approximately 53 Main board IPOs have been released which had successfully accumulated the fund of Rs 50,000 Crores in the Indian Share Market. Apart from the Main Board IPO around 170 SME (Small and Medium Enterprise) IPO have accumulated the fund of more than Rs 4,500 Crores. The influx of small and medium enterprises in the IPO segment has shown the importance and development of MSME Sectors in an Indian Economy. The Main Board and the MSME companies are playing a very vital role in keeping the balance in Indian Economy.

IPO TRENDS IN INDIAN SHARE MARKET

According to the Bombay Stock Exchange’s Performance Tracker, till 13^th December- 105 IPOs (both Mainboard and MSME Segment) have been listed in the BSE out of these 90 IPOs have shown an upward increase in its pricing when compared to Issue Price. Whereas, only 15 IPOs have shown as decrease from its Issue Pricing. As per the listing of these IPOs around 83 IPO have shown an increasing trend on its listing day whereas 22 IPOs noticed a decreasing trend on the day of its listing.

IPOs OF MAINBOARD COMPANIES IN INDIA

The biggest IPO of the year has been of the company ‘Mankind Pharma,’ the company has accumulated the fund of Rs 4,326 Crores from the Indian Market. The share pricing of the company is priced 72% above from its Issue Price. On the listing day, the shares of the company had noticed a surge of 31.86% from its Issue Price. Some other bigger IPOs of the year 2023 which had shown an increasing trend are of: Tata Technologies, JSW Infrastructure Limited, Indian Renewable Energy Development Agency (IREDA). The share pricing of these companies is double of their Issue Price. The reason behind the increasing trend of IPO can be the increasing economic power of the Indian Economy and the constant major support of the domestic and international investors.

TREND OF IPOs IN THE GLOBAL MARKET

According to the report of EY GLOBAL IPO TRENDS, the year 2023 has witnessed the release of 1,298 IPO globally which has accumulated the fund of 123.2 billion US Dollar which is 33% lower from the last year. The US Economy has successfully contributed 132 IPO in the Market, which equates to 22.2 billion US Dollars, the fund raising has shown a 157% increase from the last year. If we talk about the India’s contribution in the Global Market then, Indian companies have issued in total 223 IPOs which has accumulated the fund of 6.9 billion US Dollars which is 48% more than the last year. The Indian Market contribution in the Global Market has increased by 18% from the 2022. In the year 2021 and 2022, the Indian Market had only contributed 6% and 11% in the Global Market of the IPOs.

TOP 5 IPOs OF THE YEAR 2023

BEST PERFORMING IPOs OF 2023

BIGGEST IPOs OF ALL-TIME IN INDIA

As we have discussed some best performing IPOs of the year 2023, it is also pertinent to note some of the Biggest IPOs of all time which were issued in the Indian Market. One of the biggest IPO of all time is of the company Life Insurance Corporation of India (LIC), the IPO was released in the year 2022. The issue size of the IPO was set at Rs. 21,008,48 crores and the IPO was oversubscribed, which resulted in total subscription of Rs. 62006.53 crores. In the list at second number comes the company One 97 Communications Limited, which was released in the year 2021, which was oversubscribed with an Issue Size which resulted in total subscription of Rs. 34,568.70 crores. The list continues in line involving some other companies such as Coal India Limited released in the year 2010 having a Total Subscription of Rs. 2,32,247.44 crores, Yes Bank Limited released in the year 2020 having the total subscription of Rs. 13,974 crores, Reliance Power Limited released in the Year 2008 having the total subscription of Rs. 8,44,576.13 crores, General Insurance Corporation of India released in the year 2017 which had the total subscription of Rs. 15,422.66 crores, SBI Cards and Payment Service Limited released in the year 2020 which had the total subscription of Rs. 2,74,830.18 crores, NMDC Limited released in the year 2010 having the total subscription of Rs. 12,368.37 crores, The New India Assurance Company Limited issued in the year 2017having the total subscription of Rs. 11,493.12 crores and the famous IPO of the all-time famous company Zomato Limited issued in the year 2021 which had the total subscription of Rs. 3,58,620.94 crores. All the biggest IPOs which are listed above were based on the Issue Size of the companies IPO.