India’s primary market is vibrant and continues to attract strong investor interest, even after raising ₹1.5 lakh crore this week. A diverse range of companies, including smaller niche players, are entering the primary markets, indicating a sustained appetite among the investing community in India’s growth story.
The response to IPOs this week has been exceptional, with all issues attracting substantial subscriptions. This includes the overbooking of Tata Technologies within hours of launch. Munish Aggarwal, managing director of Equirus Group, pointed out that the strong response is due to the ample equity in the market and the active participation of qualified institutional buyers (QIBs). The overwhelming response to the government-owned green financier IREDA, with its QIB quota getting subscribed 100 times, further illustrates this trend.
Looking ahead, despite a brief pause in mainboard IPO activity, five small and medium enterprise (SME) issues are set to go live next week. Market experts predict that the IPO momentum will carry over into the next year as companies increase fund-raising activities to support capacity building in the face of sustained growth. Notably, consumer-centric companies like Gopal Snacks, Choice Brands, Graphisads, and Net Avenue Technologies are among those set to attract investor interest.
The upcoming IPOs are also evidence of changing bidding patterns, with shortened listing timeframes leading to greater opportunities for investors to participate in multiple IPOs simultaneously. The focus on listing gains intensified next week, with analysts predicting stronger performances for issues that were open this week. Moreover, the consistent demand for both established and newer, niche companies is driving interest in IPOs, as seen with the impressive response to Gandhar Oil Refinery and Flair Instruments.
In conclusion, the Indian primary market is poised for a sustained surge in IPO activity, driven by investor confidence and the attractiveness of a large universe of rapidly growing, well-managed companies. The diverse mix of companies entering the market reflects the broad scope of opportunities for investors seeking to capitalize on India’s growth trajectory. As the market continues to evolve, IPOs are expected to remain a key focus for both institutional and retail investors.
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