2024 Review: Record Breaking Year for IPOs in India and Future Outlook for 2025

The Indian IPO market in 2024 has experienced significant growth, particularly in the SME (Small and Medium Enterprises) sector, marking it as a milestone year for both listings and funds raised. India topped the global IPO charts in 2024 with 326 new listings collectively in SME and Mainboard IPO. Here’s an overview of the key developments:

IPO Market Overview in 2024 – Key Milestones & Trends

 

 

Overall IPO Activity and Growth

• SME Listings: The year 2024 witnessed a remarkable surge in SME IPOs, with 243 companies being listed on the SME platforms (NSE Emerge and BSE SME), a notable increase from the 179 listings in 2023. This reflects a 35.8% year-on-year growth in the number of companies opting for the SME route to raise capital.

 

• Mainboard Listings: In parallel, the mainboard market also saw a growth in listings, with 83 companies listing on BSE and NSE, compared to 60 listings in 2023. 

 

• Fund Raise via SME Platforms: The total funds raised via the SME IPOs crossed a significant milestone, exceeding Rs 9,000 crore in 2024. The largest SME IPO was by Danish Power Limited (Rs 197.90 crores), followed by KP Green Engineering Limited (Rs 189.50 crores).

 

• Mainboard IPO Fund Raise: Total fund raised through mainboard IPO listings was Rs 1,71, 051 crores. Hyundai Motor India's IPO was the largest IPO in 2024, raising Rs 27,870 crores. Mainboard IPO list for CY 2024 also includes telecom sector, Vodafone Idea Limited IPO  with IPO size of Rs 18000 crores and Swiggy Limited IPO of Rs 11327.43 crores. 

 

Sahasara Electronics SME IPO, Rajesh Power Services SME IPO, SAR Televenture SME IPO, Mach Conferences SME IPO and Ganesh Green Bharat SME IPO were launched with IPO size of more than Rs 120 crores. 

Unicorn companies like Mobikwik, a fintech company; Zomato and Swiggy, Online service providers and food and grocery delivery giants launched their IPO by the end of the year 2024. Their IPOs were much awaited by the investors. All the three newly listed companies listed with robust gains and continue to perform well in the markets. The above companies mentioned were listed in the QIB segment.

 

Best Merchant Bankers in India

Hem Securities was the top merchant banker in India in 2024 for SME IPOs with 29 IPOs, out of which 23 were are in gain basis current market price. Beeline capital advisors was the second top merchant banker with 26 IPOs. 16 IPOs were handled by GYR capital Advisors.

 

Monthly IPO Trends

• SME IPOs:

  • The month of September 2024 saw the highest number of SME IPOs with a total of 34 IPOs raising Rs 1,388 crore.
  • July 2024 followed closely with Rs 1,332 crore being raised from SME listings.

 

SME IPOS 2024
Month	No. of IPOs	Fund Raised
January	18	₹ 463 Cr.
February	20	₹ 764 Cr.
March	18	₹ 742 Cr.
April	23	₹ 673 Cr.
May	21	₹ 527 Cr.
June	17	₹ 563 Cr.
July	26	₹ 1,332 Cr.
August	25	₹ 769 Cr.
September	34	₹ 1,388 Cr.
October	21	₹ 1,209 Cr.
November	4	₹ 120 Cr.
December	16	₹ 934 Cr.
2024	243	₹ 9,486 Cr.

As of 19th December 2024

 

• Mainboard IPOs:

  • November 2024 emerged as the peak month, accounting for Rs 35,729 crores, the highest funds raised in a single month on the mainboard in 2024.
  • The months of October and November together contributed to 40% of the total funds raised on the mainboard platform in 2024.

 

Mainboard IPOs
Month	No. of IPOs	Fund Raised
January	4	₹ 2,955 Cr.
February	9	₹ 6,921 Cr.
March	9	₹ 5,615 Cr.
April	4	₹ 23,055 Cr.
May	5	₹ 9,606 Cr.
June	5	₹ 1,957 Cr.
July	5	₹ 4,878 Cr.
August	8	₹ 14,700 Cr.
September	13	₹ 14,825 Cr.
October	7	₹ 33,770 Cr.
November	8	₹ 35,729 Cr.
December	6	₹ 17,039 Cr.
2024	83	₹ 1,71,051 Cr.

As of 19th December 2024

 

 

• Sectoral Performance and Trend:

The IPO market in 2024 displayed a diverse sectoral participation, unlike previous years, where IPOs were concentrated in a few sectors. Key sectors include:

• Telecom: Vodafone Idea raised Rs 18,000 crores.
• Automobile: Hyundai Motor India raised Rs 27,870 crores, the largest IPO in 2024.
• E-commerce & Fintech: Unicorn Companies like Swiggy, Zomato, and Mobikwik saw significant IPO listings.
• Electric Equipment (Transformers): The largest SME IPO, Danish Power Limited IPO was in the electric equipment sector, particularly Transformers, which raised considerable funds of Rs 197.90 crores.
• There was also notable participation from technology-driven sectors like SaaS and fintech companies. 16 SME IPOs belonged to the Agro sector in year 2024 as compared to 8 SME IPOs in year 2023.

 

As of 19th December 2024

 

IPO Listing Gains (Top 10 IPOs by Listing Gain)

• SME IPOs: Out of the 243 SME IPOs in 2024, 220 companies delivered positive listing gains.
  • Winsol Engineers Limited (listed on NSE Emerge) recorded the highest gain of 411%, reflecting the strong investor appetite for high-growth SME listings.
  • TAC Infosec (by Beeline Capital Advisors) was the second-highest performer.

 

• Mainboard IPOs: Out of the 53 mainboard IPOs, many companies performed well, with investors seeking good returns from prominent listings of Zomato, Swiggy and others.

 

Top Cities for IPO Activity

• Mumbai remained the top city for IPO activity, with a total of 440 IPOs, combining both SME and mainboard listings.
• New Delhi followed with 261 IPOs.

Top SME IPOs of 2024 – Current Market Performance (CMP%)

As of December 25, 2024, the following SME IPOs have delivered impressive returns, standing out as the top performers based on their Current Market Price (CMP) relative to their Offer Price:

• Owais Metal and Mineral Processing IPO

  • CMP: Rs 1,019 (25^th Dec 2024)
  • Offer Price: Rs 87
  • CMP Gain: 1,174%
  • Merchant Banker: Gretex Corporate Services
  • Owais Metal and Mineral Processing, a company in the mining and mineral processing sector, tops the list of SME IPOs in 2024. With a robust listing gain and a significant rise in its market performance, it has seen tremendous investor interest, making it one of the best-performing SME IPOs this year.

 

• TAC Infosec SME IPO

  • CMP: Rs 1,228 (25^th Dec 2024)
  • Offer Price: Rs 106
  • CMP Gain: 943%
  • Merchant Banker: Beeline Capital Advisors
  • TAC Infosec, a SaaS-based company, has been the second-best performer in the SME space in 2024. The company offers security solutions and digital services, gaining traction due to the growing demand for cybersecurity solutions across industries.

 

as of 19th December 2024

 

Top Mainboard IPOs of 2024 – Current Market Performance (CMP%)

• Jyoti CNC Automation 

  • CMP: Rs 1355 (25^th Dec 2024)
  • Offer Price: Rs 331
  • CMP Gain: 334%
  • Merchant Banker: Equirus Capital Private Limited and others
  • Jyoti CNC Automation Limited is an Engineering - Heavy Machinery based company, located in Rajkot, Jyoti CNC Automation Limited IPO size was 1000.00 Cr. 

 

• KRN Heat Exchangers
  • CMP: Rs 710.30 (25^th Dec 2024)
  • Offer Price: Rs 220
  • CMP Gain: 249%
  • Merchant Banker: Holani Consultants
  • KRN Heat Exchanger and Refrigeration Limited is an Engineering based company, located in Alwar, KRN Heat Exchanger and Refrigeration Limited IPO size was 341.95 Cr.

 

As of 19th December 2024

 

Top IPOs of 2024 - On basis of Listing Gain, IPO Subscription, PAT, IPO Size

 

 

News Highlights & Regulatory Changes

• The SEBI (Securities and Exchange Board of India) regulations were amended to aim at ensuring transparency, sustainability, and better investor protection in the SME IPO space.
• The key changes include implementation of Rs 1crore EBITDA for any two years out of the last 3 years and limiting the OFS to 20% of the Issue Size.
• SEBI’s enhanced scrutiny is expected to boost investor confidence and foster a more stable and sustainable SME IPO market.

 

Outlook for IPO Market in 2025

The outlook for the IPO market in 2025 is cautiously optimistic, supported by robust market activity in 2024. Several factors will drive the market dynamics:

1. Continued Growth in SME IPOs: With enhanced regulatory frameworks and more transparency, 2025 might see an even higher number of SME listings, as strong businesses seek capital for expansion and innovation.
2. Sectoral Diversification: Sectors like renewable energy, technology, fintech, and e-commerce will likely continue to dominate, but the inclusion of more traditional sectors like pharma, manufacturing, and automobile may also grow.
3. Upcoming IPOs- 190 DRHP’s are filed for upcoming IPOs in Year 2025 in SME segment and 86 in Mainboard segment.
4. Large IPOs in Mainboard: With major IPOs already scheduled for 2025; the mainboard market is expected to remain active, with potential for further large fund raises.
5. Global Economic Factors: Any global market uncertainty, including inflation concerns, interest rate hikes, or geopolitical issues, could temper the IPO market activity. However, India’s strong economic fundamentals and growing middle-class population continue to make it an attractive investment destination.
6. Investor Sentiment: If retail and institutional investor sentiment remains strong, particularly post-2024's high returns, one can expect a solid year ahead for IPOs.

In conclusion, the IPO market in 2024 has set the stage for continued growth in 2025. The SME segment will likely continue to see significant participation from investors seeking growth opportunities in smaller, high-potential companies.