The Indian stock market has recently been on fire, with September being one of the busiest months for initial public offers (IPOs) in the previous 14 years. According to data issued by the Reserve Bank of India (RBI) on September 20, IPO activity in India has reached an all-time high, indicating a substantial recovery of interest in public offerings.
This spike is not restricted to huge corporations; it includes both the mainboard and the small and medium company (SME) divisions, indicating a wide desire for investment opportunities in several market areas.
IPO Boom: Setting New Records in September
September alone witnessed over 28 companies making their debut on Dalal Street, split between the mainboard and the SME segments. This number is remarkable, as such an IPO surge has not been seen in over a decade.
The sudden resurgence indicates a renewed sense of confidence and eagerness among both companies and investors to participate in the capital markets.
It seems that investors are increasingly seeing IPOs as a strategic entry point into a market that is scaling new highs, despite the risks associated with such investments.
On the global front, India’s recent IPO activity stands out impressively. The RBI report highlights that India accounted for the highest number of public listings worldwide, capturing a striking 27% share of all IPOs during the first half of the 2023-24 fiscal year.
SME IPOs: Their Role in Driving the Surge The SME market has contributed significantly to the growth in IPOs. The enormous oversubscriptions of SME IPOs have garnered a lot of attention, making them a focal focus of the current IPO craze.
Small and medium-sized enterprises (SMEs) are rapidly capitalising on investor enthusiasm, with many adopting public listings to raise capital for expansion and growth.
The enthusiasm observed in the SME area speaks volumes about the widening variety of opportunities available to both retail and institutional investors.