Bumper Q4 leads to ₹1.80 Trillion of IPO collections in 2024

2 Jan 2025 , 02:41 PM

A QUICK LOOK AT IPO STORY IN CALENDAR 2024

As year 2024 comes to an end, the one area we can look with satisfaction is the IPO space. With collections of over ₹1.80 Trillion in the year, it was a year of records. Incidentally, the year also saw the largest IPO in Indian history, Hyundai Motor India Ltd. Here is a quick summary of our broad IPO observations for year 2024.

• A total of 92 IPOs in year 2024 collected a total sum of ₹1,80,037 Crore on the IPO mainboard. We have only considered IPOs that also got listed in 2024. Incidentally, we have also included the follow-on public offer (FPO) of Vodafone and the issue of Bharat INVIT too. Out of the 92 IPOs in the year; there were 21 IPOs in the March quarter, 15 IPOs in the June quarter, 26 IPOs in September quarter and just 24 IPOs in the December quarter so far. More than 50% of the IPO collections came in Q4-2024.
• While the intent of was to collect ₹1,80,037 Crore from the public via these 92 IPOs, the actual investor interest received for these IPOs (inclusive of oversubscription) was to the tune of ₹46,98,115 Crore. That effectively translates into an overall subscription of 26.10 for all mainboard IPOs in 2024 overall.
• Out of the 92 IPOs that have already listed in the year 2024, a total of 68 IPOs have given positive returns while 24 IPOs have given negative returns. The top 5 performers for the year, so far, were Jyoti CNC Automation (+310.8%), followed by KRN Heat Exchanger (+257.2%), Premier Energies (+192.8%), EPACK Durable Ltd (+165.2%), and Bharti Hexacom (+159.2%). These are point-to-point returns; not annualized.
• Out of the 68 IPOs that have given positive returns in 2024, a total of 12 IPOs gave more than 100% returns, 32 IPOs gave more than 50% returns, while a total of 53 IPOs gave more than 25% returns. Had an investor invested in all the 92 IPOs in 2024 and got an allotment of one lot each, their return on investment would have been an impressive 29.29%. The figure is up sharply in the last two months.
• It was a year of mega issues. There were a total of 4 IPOs raising ₹10,000 Crore and above, including the ₹27,870 Crore Hyundai Motor India IPO and the ₹18,000 Crore Vodafone Idea FPO. Two other IPOs; Swiggy and NTPC Green Energy raised ₹11,327 Crore and ₹10,000 Crore respectively. A total of 12 IPOs raised more than ₹4,000 Crore, 21 IPOs raised over ₹2,000 Crore, and 35 IPOs this year raised over ₹1,000 Crore.
• In terms of subscription, the 92 IPOs put together got an aggregate oversubscription of 26.10 times, of which a total of 4 IPOs were subscribed over 200 times, 22 IPOs got subscribed more than 100 times and a robust 46 IPOs got subscribed over 50 times.

Let us look at the 10 best IPOs under various criteria.

BEST IPOS BY TOTAL RETURNS IN 2024

Here are the 10 best IPOs of the year 2024 based on total returns post listing.

Issuer Company	Listing Date	Issue Size (₹ in Crore)	Subscription Ratio (X)	Issue Price (₹)	Market Price (₹) #	Absolute Returns (%)
Jyoti CNC Automation	16-Jan-24	1,000.00	40.49	331	1,359.60	310.76%
KRN Heat Exchanger	03-Oct-24	341.95	213.41	220	785.85	257.20%
Premier Energies	03-Sep-24	2,830.40	75.00	450	1,317.40	192.76%
EPACK Durable	30-Jan-24	640.05	16.79	230	609.90	165.17%
Bharti Hexacom	12-Apr-24	4,275.00	29.88	570	1,477.30	159.18%
Gala Precision Engineering	09-Sep-24	167.93	201.41	529	1,368.35	158.67%
Platinum Industries	05-Mar-24	235.32	98.99	171	431.80	152.51%
Orient Technologies	28-Aug-24	214.76	154.84	206	488.40	137.09%
Mamata Machinery	27-Dec-24	179.39	194.95	243	567.20	133.42%
One MobiKwik Systems	18-Dec-24	572.00	125.69	279	612.30	119.46%

Data Source: NSE (# – Price on 02-Jan-25)

Here are some quick findings from the ranking on returns.

• A passive approach to investing in all the 92 IPOs would have yielded return on investment (ROI) of 29.29. This has sharply improved over the last 2 months.
• How did arithmetic averages of returns look like? The top 10 companies by returns generated average point-to-point returns of 178.6%, while the top 20 companies gave average returns of 136.6%. However, had you been unlucky and selected the 20 worst IPOs, you would have been far from pleased, with average returns of -26.37%.
• How did the top and bottom return companies fare in subscription ratio? The top 10 companies had average subscription of 115.15 times while the bottom 10 by returns had average subscription of 36.80 times. They appear to be going together.

In any return ranking, there is the predominance of the small company effect, but at a macro level, it still gives a good picture of the performance of IPOs in the year.

BEST IPOS BY RUPEE WEALTH CREATED IN 2024

Since returns are biased in favour of smaller companies, we have also considered rupee wealth creation to give weightage to size also.

• Against the overall issue size of ₹1,80,037 Crore, the total wealth created was to the tune ₹52,729 Crore. Out of this total wealth created. The top 5 companies created market wealth to the tune of ₹25,891 and the top 10 companies created market wealth to the tune of ₹37,255 Crore.
• The attractiveness of an IPO is not just in the returns or wealth created but also the chances of getting an allotment. If you look at the top 5 by wealth created, the average subscription ratio was 51.07 times while for the top 10 stocks by wealth created it was 37.48 times. So, chances for retail participation in wealth creation were fairly high.

Having seen returns in relative and absolute terms, we move to subscription comparison.

BEST IPOS BY SUBSCRIPTION RATIO IN 2024

Here are the 10 best IPOs of the year 2024 based on the subscription ratio.

Issuer Company	Listing Date	Issue Size (₹ in Crore)	Subscription Ratio (X)	Issue Price (₹)	Market Price (₹) #	Absolute Returns (%)
Vibhor Steel Tubes Ltd	20-Feb-24	72.17	320.05	151	213.99	41.72%
Manba Finance Ltd	30-Sep-24	150.84	224.05	120	158.86	32.38%
KRN Heat Exchanger	03-Oct-24	341.95	213.41	220	785.85	257.20%
Gala Precision Engineering	09-Sep-24	167.93	201.41	529	1,368.35	158.67%
Mamata Machinery Ltd	27-Dec-24	179.39	194.95	243	567.20	133.42%
Unimech Aerospace	31-Dec-24	500.00	184.34	785	1,486.55	89.37%
Unicommerce eSolutions	13-Aug-24	276.57	168.35	108	172.63	59.84%
BLS E-Services Ltd	06-Feb-24	310.91	162.38	135	206.66	53.08%
Orient Technologies Ltd	28-Aug-24	214.76	154.84	206	488.40	137.09%
Mukka Proteins Ltd	07-Mar-24	224.00	136.99	28	39.90	42.50%

Data Source: NSE (# – Price on 02-Jan-25)

Here are some of our key inferences.

• Out of the total IPO size of ₹1,80,037 Crore, total subscription interest received was ₹46,98,115 Crore. That translates into overall subscription ratio of 26.10 times for all 92 IPOs. That is substantial appetite.
• The ranking by subscription is biased in favour of smaller IPOs. For instance, if you look at the average IPO size of the top 5 ranked by subscription ratio, it was just ₹183 Crore. The top 10 by subscription ratio had an average issue size of ₹244 Crore while the top 20 had an average IPO issue size of ₹300 Crore. Interestingly, the average size of the 92 IPOs in 2024 was ₹1,957 Crore.
• Did companies with highest subscription ratio also score high on returns? The top 10 companies by subscription ratio had average returns are around 100.5%, while for the top 20 companies by subscription, the average returns were 75.6%. Subscription ratio is impacting returns, although it is quite limited now.

Now, to address the size challenge, we look at rupee subscription as a proxy.

BEST IPOS BY RUPEE SUBSCRIPTION APPETITE IN 2024

Since subscription ratio is again biased in favour of smaller companies, we have also considered rupee subscription appetite to give weightage to size.

• A total of 10 out of 92 companies got subscription interest of more than ₹1 Trillion. These top 10 by subscription appetite accounted for close to 50% of the overall subscription appetite of all IPOs.
• The top 10 by subscription interest generated average returns of 82%, which is a good sign. If you look at the top 20 companies, then the average returns are 72.3%. So, one can safely conclude that a largely number of investors have made a lot of money in the equity market.

To sum up, year 2024 has been an interesting year with record collections. For now, it is expected that year 2025 could only get better.