Upcoming IPO
Most awaited National Securities Depository Limited’s (NSDL) IPO to hit the market in 2024
The Indian primary market is gearing up for an eventful year, with expectations of raising over Rs 75,000 crore through Initial Public Offerings (IPOs) in 2024. Pranav Haldea, MD of Prime Database, shared insights at the AIBI Annual Convention 2023-34, foreseeing robust activity in both the primary and secondary markets, primarily influenced by the upcoming general elections scheduled between April and May 2024.
Post-Election IPO Surge:
Haldea anticipates a surge in IPO activity post the general elections, with a potential flurry of offerings entering the market. However, he suggests a brief pause in IPO launches in the period leading up to the elections. The BJP’s impressive performance in the December 2023 state elections, winning three out of four states, has reinforced expectations of a positive outcome in the 2024 national polls, providing a boost to investor sentiment.
NSDL IPO on the Horizon:
Among the highly anticipated IPOs, Haldea highlights the likelihood of the National Securities Depository Limited (NSDL) making its market debut in 2024. As the country’s oldest depository services firm, NSDL is expected to raise approximately Rs 3,000 crore, adding significant momentum to the IPO landscape.
Sectoral Trends and IPO Landscape:
Haldea predicts an influx of new-age technology companies (NATCs) and manufacturing firms entering the IPO arena in 2024. With a shift towards larger firms going public, he foresees an increase in the average IPO size compared to the previous year. Notable companies, including OYO, Digit Insurance, and First Cry, are among the NATCs planning IPOs, collectively targeting roughly Rs 16,000 crore.
Regulatory Approvals and Market Dynamics:
According to Prime Database, more than 27 companies have received approval from the Securities and Exchange Board of India (SEBI) to raise a combined amount of Rs 28,500 crore. Additionally, around 36 companies await regulatory approval, aiming to raise a total of Rs 40,500 crore. The overall capital market activity in 2023, with a total of $38 billion, approached the peak of CY20 ($39 billion), reflecting resilience and potential growth.
Conclusion:
As India braces for a dynamic year in the capital markets, the confluence of political events, regulatory approvals, and the entrance of diverse companies into the IPO landscape paints a promising picture for investors and market participants in 2024.
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