2024's IPOs explode with 31% Day 1 pop: Fireworks or false start?

The initial public offerings (IPOs) of 2024 saw strong gains, with a weighted average first-day increase of 31 per cent, compared to 40 per cent in 2023, according to an analysis by Nuvama Alternative & Quantitative Research.

 

This year’s gains might have been higher if not for the lacklustre debut performances of several large IPOs, including Hyundai Motor India (which saw a 6 per cent drop on its first day), Afcons Infrastructure (up 7 per cent), and Acme Solar Holdings (down 3 per cent).

 

Eight companies saw their market value more than double on debut. The largest first-day pop came from Jyoti CNC Automation (shares surged 4.2x), followed by KRN Heat Exchanger & Refrigeration (3.8x), and Premier Energies (2.8x).

 

An ‘IPO pop’ refers to the jump in stock price after a company goes public, typically seen on the first day of trading.

 

Among the biggest decliners were Popular Vehicles & Services (down 46 per cent), Capital Small Finance Bank (down 40 per cent), and Akme Fintrade (India) (down 26 per cent).

 

In 2024, more than 90 mainboard IPOs raised a record Rs 1.6 trillion, surpassing the 2021 record of Rs 1.19 trillion. Including small or midsized enterprise IPOs, follow-on offerings, offers for sale, qualified institutional placements, and rights issues, total equity raised exceeded Rs 3.4 trillion — 2.2x last year’s total of Rs 1.6 trillion.