Equity mopup increases 2.2 times in H1FY25, says Prime Database

Headed towards a record breaking year for IPOs, says Prime Database

At Rs 1.55 trillion, the amount of capital raised through equity issuances during the first half of financial year 2024-25 (H1FY25) was 2.2 times that of the same period of last financial year. The mop up via initial public offering (IPO) at Rs 56,340 crore was also nearly twice of last fiscal.

Meanwhile, qualified institutional placements (QIPs) mobilised Rs 66,250 crore, 2.7x during the same period last fiscal, shows an analysis done by Prime Database. The equity fund mop up was underpinned by broad-based gains in the markets. The Nifty 50 index rose 15.6 per cent during H1FY25, while the Nifty Midcap 100 and the Nifty Smallcap 100 advanced around 25 per cent each.

“The strong IPO response was buoyed by strong post-listing performance. Average listing gain (based on closing price on listing date) increased to 34.28 per cent, in comparison to 28.65 per cent in the first half of 2023-24. Of the 38 IPOs which have got, 30 gave a return of over 10 per cent,” said Pranav Haldea, Managing Director, Prime Database Group.

Haldea said the fund raising outlook remains strong going by IPO filings.

“The pipeline is huge. 26 companies proposing to raise Rs 72,000 crore are presently holding Sebi approval while another 55 companies looking to raise about Rs 89,000 crore are awaiting approval. Of these, three are new-age tech companies looking to raise roughly Rs 13,000 crore. Unless there is a black swan event, it is likely to be a record breaking year for IPOs,” he said.

The activity on the small and medium enterprises (SME) platforms was also buoyant.

During the first half of 2024-25, 143 SME IPOs raised close to Rs 5,000 crore, up 83 per cent compared to Rs 2,724 crore from 96 IPOs in the same period last year. The average listing gain for SME IPOs increased to 63 per cent in comparison to 41 per cent in the first half of 2023-24.

Bajaj Housing Finance (Rs 6,560 crore) was the largest-IPO during the first half, while Vedanta’s Rs 8,500-crore fresh fund raise was the biggest QIP.