 "Half of IPO activity came from 5 sectors in the past 2 years: Motilal Oswal")
Five sectors accounted for more than half of the total initial public offerings (IPOs) on both the mainboard and SME platforms over the past two years, according to a report by Motilal Oswal. In a note to investors, the brokerage said the contribution of these sectors varied from year to year.
Which sectors led IPO activity in CY25?
In CY25, non-banking finance companies accounted for 26.6 per cent of IPO activity, followed by capital goods at 9.5 per cent, technology at 9.2 per cent, healthcare at 6.4 per cent, and consumer durables at 6 per cent.
Which sectors dominated IPOs in CY24?
In contrast, IPO activity in CY24 was led by automobiles at 19.3 per cent, telecom at 11.8 per cent, capital goods at 9 per cent, retail at 8.7 per cent, and e-commerce at 7.6 per cent.
Which sectors dropped out in CY25?
“Despite contributing nearly 18 per cent of the total capital raised in CY24, the telecom, utilities, and private banking sectors reported zero fundraising activity in CY25,” the note said.
How strong was IPO subscription demand?
The brokerage added that IPOs have been oversubscribed 26.6 times over the past two years. Sectors that witnessed strong subscription levels relative to their offer sizes included capital goods, non-banking finance companies, healthcare, technology, and e-commerce.
How have IPOs performed after listing?
On post-listing performance, the note said that 197 mainboard IPOs have been listed over the last two years. Of these, 108 IPOs, or 55 per cent, are trading at a premium to their offer prices, with 14 trading at a premium of more than 100 per cent.
Among the top 20 companies by issue size, 16 are trading above their offer prices. Bharti Hexacom leads with a gain of 214 per cent over its offer price, followed by Waaree Energies at 104 per cent, Meesho at 82 per cent, Vishal Mega Mart at 75 per cent, and Billionbrains Garage at 66 per cent.