Recap FY24 – IPO story is firing on all cylinders

5 Apr 2024 , 11:16 AM

FY24 – IPOS SURGE COMPARED TO PREVIOUS YEAR

The IPO collections in FY24 may not be anywhere close to what we saw a couple of years back at the peak of the digital IPO boom in FY22. However, in terms of number of IPOs, there were 78 IPO in all this fiscal year on the mainboard, which is a 16-year high. If you look at the IPO story of FY24, there were a total of 78 IPOs (including REIT / INVIT issues), which collected ₹67,561 Crore between them. So, the average IPO size in the year was below ₹1,000 Crore, which explains the large number of IPOs in the fiscal year FY24. In FY24, if the mainboard IPOs had a busy year, then the SME IPOs were a lot more robust, despite concerns raised by the regulator on SME IPOs towards the end of the year.

In our retrospect of FY24, we look at the IPO story from different perspectives. Of course, two traditional ways of ranking these IPOs is based on their post listing returns and based on their subscription levels. We are also looking at two more parameters. For instance, the returns and the subscription levels could often be skewed in favour of the smaller sized issues and larger issues could lose out in the bargain. Hence we looks at two more parameters viz. the total IPO subscription interest received in rupee terms and also the rupee value addition by the IPO stock to the overall market cap. Here is the IPO story of the fiscal year FY24, across the 78 IPOs that listed during the fiscal year.

IPO STORY FY24 – WHAT WERE THE MAJOR TAKEAWAYS

Here are some key takeaways from the IPO story of FY24. It has certainly been a year of robust IPO collections and there would be more to come in FY25. Let us first take a quick look at the highlights of the IPO story in FY24.

• A total of 78 IPOs listed in the primary markets during FY24 (we are considering IPO listings and not IPO closings as the barometer). If we break up the IPOs quarter-wise; then there were 5 IPOs in Q1FY24, 23 IPOs in Q2FY24, 28 IPOs in Q3FY24 and 22 IPOs in Q4FY24. While the first quarter was relatively tepid, the IPO issues were somewhat evenly spread out across the second, third and the fourth quarters. The momentum appears to have picked up with the pick-up in the secondary market performance.
• During the year, out of the 78 IPOs that listed on the NSE / BSE, only 15 IPOs have given negative returns as of the close of FY24 with the remaining 63 IPOs giving positive returns. Here we have considered returns in absolute terms and these returns have not been annualized, irrespective of the time frame for the generation of the returns. Five of the worse performers were concentrated in the last 4 months of FY24.
• The 78 IPOs collected ₹67,561 Crore between them. However, against this IPO fund raising, the total response received in the IPOs in terms of expression of interest was to the tune of ₹23,96,670 Crore. That effectively means that for FY24 as a whole, the total investor response represented an oversubscription of 35.47 times.
• Now for the good news. Out of the 78 IPOs in the year, there were a total of 18 multi-baggers that delivered more than 100% returns over the issue price. A total of 38 out of the 78 IPOs delivered returns more than the Nifty index had delivered in the fiscal year FY24. That should go down as an impressive performance by the IPOs in FY24.
• How did the IPOs perform as an asset class? If an investor had got allotment of one lot of each of the IPOs during the year, the annualized returns on the IPO portfolio would have been 62.32%. That is substantial considering that the Nifty and the Sensex have given about 29-31% returns during fiscal year FY24.
• How many IPOs contributed to the IPO returns for FY24 in rupee terms? The top-10 highest value creators in rupee terms for the year accounted for 70% of the overall returns while the other 68 companies accounted for just about 30% of the total returns.

To sum it up, fiscal year FY24 has been a year of revival for the IPO markets; not only in terms of the number of IPOs hitting the market, but also in terms of the investor response.

IPO STARS FY24 – BEST IPO STORIES BY POST-LISTING RETURNS

The table below captures the top 20 companies based on total returns generated by the IPOs over its issue price. This is time agnostic and recent IPOs and older IPOs are evaluated on the same return scale.

Name	IPO Listing	Issue Size (₹ Crore)	Subscription (X)	Issue Price	Market Price (₹)	Returns (%)
IREDA Ltd	29-Nov-23	2,150.21	38.80	32.00	158.50	395.31%
SignatureGlobal (India)	27-Sep-23	730.00	12.50	385.00	1,292.00	235.58%
Netweb Tech	27-Jul-23	631.00	90.55	500.00	1,654.50	230.90%
Motisons Jewellers	26-Dec-23	151.09	173.23	55.00	168.20	205.82%
Cyient DLM Ltd	10-Jul-23	592.00	71.35	265.00	704.25	165.75%
Senco Gold	14-Jul-23	405.00	77.25	317.00	805.20	154.01%
Azad Engineering	28-Dec-23	740.00	83.04	524.00	1,308.80	149.77%
BLS E-Services Ltd	06-Feb-24	310.91	162.38	135.00	326.65	141.96%
Jyoti CNC Automation	16-Jan-24	1,000.00	40.49	331.00	755.50	128.25%
Tata Technologies	30-Nov-23	3,042.51	69.43	500.00	1,136.60	127.32%
Mankind Pharma	09-May-23	4,326.36	15.32	1,080.00	2,325.00	115.28%
Vibhor Steel Tubes	20-Feb-24	72.17	320.05	151.00	325.00	115.23%
DOMS Industries	20-Dec-23	1,200.00	99.34	790.00	1,700.00	115.19%
JSW Infrastructure	03-Oct-23	2,800.00	39.36	119.00	252.20	111.93%
Utkarsh SFB	21-Jul-23	500.00	110.77	25.00	52.65	110.60%
EMS Limited	21-Sep-23	321.24	76.21	211.00	443.50	110.19%
Concord Biotech	18-Aug-23	1,551.00	24.87	741.00	1,511.00	103.91%
Inox India Ltd	21-Dec-23	1,459.32	61.28	660.00	1,336.00	102.42%
Plaza Wires Ltd	12-Oct-23	71.28	160.97	54.00	98.95	83.24%
Zaggle Prepaid Ocean	22-Sep-23	563.38	12.86	164.00	297.00	81.10%

Data Source: NSE / BSE (CMP: 04-April)

Here are some of the key takeaways from the ranking on total percentage returns on the IPOs post listing for FY24

• Out of the 78 IPOs listed till date in FY24, only 15 IPOs gave negative returns while the remaining 63 companies gave positive returns.
• The top 5 IPOs in terms of percentage returns were IREDA Ltd, SignatureGlobal, Netweb Technologies, Motisons Jewellers and Cyient DLM.
• A total of 18 IPOs more than doubled over their IPO issue price while IREDA was the only company to provide near 5-fold returns in FY24.
• Out of the 78 IPOs, a total of 27 IPOs generated returns of more than 50%, while a total of 38 IPOs generated returns of more than 30% post listing. A total of 48 out of the total 78 IPOs managed to deliver double digit returns over the listing price in FY24.

Clearly, FY24 has been a robust year for IPOs in terms of returns post listing. The negative returns were actually concentrated in the last 4 months of the year, so things can change.

IPO STARS FY24 – BEST IPO STORIES BY SUBSCRIPTION RATIO

The table below captures the top 20 companies based on total subscription ratio received by the IPOs in ratio terms. One can argue that this favours smaller IPOs, but we remain agnostic. There are other measures to taker care of larger IPOs. Here is a dekko.

Name	IPO Listing	Issue Size (₹ Crore)	Subscription (X)	Issue Price	Market Price (₹)	Returns (%)
Vibhor Steel Tubes	20-Feb-24	72.17	320.05	151.00	325.00	115.23%
Motisons Jewellers	26-Dec-23	151.09	173.23	55.00	168.20	205.82%
BLS E-Services Ltd	06-Feb-24	310.91	162.38	135.00	326.65	141.96%
Plaza Wires Ltd	12-Oct-23	71.28	160.97	54.00	98.95	83.24%
Mukka Proteins	07-Mar-24	224.00	136.99	28.00	38.30	36.79%
Exicom Tele-System	05-Mar-24	429.00	133.56	142.00	207.25	45.95%
Nova Agritech	31-Jan-24	143.81	113.21	41.00	56.90	38.78%
Utkarsh SFB	21-Jul-23	500.00	110.77	25.00	52.65	110.60%
IdeaForge Technology	07-Jul-23	567.29	106.06	672.00	727.00	8.18%
DOMS Industries	20-Dec-23	1,200.00	99.34	790.00	1,700.00	115.19%
Platinum Industries	05-Mar-24	235.32	98.99	171.00	204.00	19.30%
Aeroflex Industries	31-Aug-23	351.00	97.11	108.00	148.25	37.27%
Ratnaveer Precision	11-Sep-23	165.03	93.99	98.00	130.60	33.27%
Netweb Tech	27-Jul-23	631.00	90.55	500.00	1,654.50	230.90%
Vishnu Prakash	05-Sep-23	308.88	87.82	99.00	170.00	71.72%
Azad Engineering	28-Dec-23	740.00	83.04	524.00	1,308.80	149.77%
Happy Forgings	27-Dec-23	1,008.59	82.63	850.00	921.20	8.38%
Senco Gold	14-Jul-23	405.00	77.25	317.00	805.20	154.01%
ESAF SFB	10-Nov-23	463.00	77.00	60.00	62.25	3.75%
EMS Limited	21-Sep-23	321.24	76.21	211.00	443.50	110.19%

Data Source: NSE / BSE (CMP: 04-April)

Here are some of the key takeaways from the ranking on total subscription ratio of the IPOs in the fiscal year FY24.

• Out of the 78 IPOs listed in FY24, all the 78 IPOs got at least one time subscribed. The only IPO that had to be cancelled in FY24 was PKH Ventures, which failed to get more than 65% subscribed and the QIB portion was also undersubscribed.
• The top 5 IPOs in terms of the subscription ratio were Vibhor Steel Tubes, Motisons Jewellers, BLS E-Services, Plaza Wires, and Mukka Proteins.
• A total of 9 IPOs got subscribed more than 100 times and all the 9 IPOs were below ₹600 Crore in terms of IPO size. Vibhor Steel Products was the only IPO of FY24 to get subscribed over 300 times in the IPO.
• Out of the 78 IPOs, a total of 17 IPOs got subscribed more than 80 times, while a total of 32 IPOs got subscribed more than 50 times. A total of 59 out of the total 78 IPOs managed to get double digit subscription or better in FY24.

While the top 4 companies may have been relatively smaller IPOs, you would find that in the list of top 20 IPOs by subscription, there are only 2 IPOs with an issue size of more than ₹1,000 Crore. Clearly, subscription levels are favouring the smaller IPOs to a large extent.

IPO STARS FY24 – IPOS WITH BEST MARKET CAP ACCRETION

The first two measures of IPOs we saw till now were biased in favour of smaller IPOs. To be fair to the larger IPOs, we have also ranked these IPOs on Value Created, which is the market cap accretion caused by the IPO post listing. Here is the list for FY24.

Name	IPO Listing	Issue Size (₹ Crore)	Subscription (X)	Issue Price	Market Price	Value Addition
IREDA Ltd	29-Nov-23	2,150.21	38.80	32.00	158.50	10,650.26
Mankind Pharma	09-May-23	4,326.36	15.32	1,080.00	2,325.00	9,313.69
Tata Technologies	30-Nov-23	3,042.51	69.43	500.00	1,136.60	6,916.23
JSW Infrastructure	03-Oct-23	2,800.00	39.36	119.00	252.20	5,934.12
Nexus Select Trust	19-May-23	3,200.00	5.45	100.00	132.42	4,237.44
Concord Biotech	18-Aug-23	1,551.00	24.87	741.00	1,511.00	3,162.70
R R Kabel Ltd	20-Sep-23	1,964.01	18.69	1,035.00	1,561.90	2,963.85
Inox India Ltd	21-Dec-23	1,459.32	61.28	660.00	1,336.00	2,954.02
Bharat Highways INVIT	12-Mar-24	2,500.00	6.74	100.00	108.10	2,702.50
DOMS Industries	20-Dec-23	1,200.00	99.34	790.00	1,700.00	2,582.28
Juniper Hotels	28-Feb-24	1,800.00	2.18	360.00	502.00	2,510.00
SignatureGlobal (India)	27-Sep-23	730.00	12.50	385.00	1,292.00	2,449.77
Cello World Ltd	06-Nov-23	1,900.00	41.69	648.00	810.00	2,375.00
Jyoti CNC Automation	16-Jan-24	1,000.00	40.49	331.00	755.50	2,282.48
SAMHI Hotels	22-Sep-23	1,370.10	5.57	126.00	205.40	2,233.48
Honasa Consumer	07-Nov-23	1,701.44	7.61	324.00	409.55	2,150.69
Netweb Tech	27-Jul-23	631.00	90.55	500.00	1,654.50	2,087.98
Azad Engineering	28-Dec-23	740.00	83.04	524.00	1,308.80	1,848.31
Cyient DLM Ltd	10-Jul-23	592.00	71.35	265.00	704.25	1,573.27
SBFC Finance	16-Aug-23	1,025.00	74.06	57.00	83.75	1,506.03

Data Source: NSE / BSE (CMP: 04-April)

Here are some of the key takeaways from the ranking on total rupee returns on the IPOs post listing for FY24.

• Out of the 78 IPOs listed till date in FY24, the top 20 IPOs by rupee value addition, accounted for 66.1% of all the market cap accretion by IPOs in fiscal year FY24.
• The top 5 IPOs in terms of rupee value addition are IREDA Ltd, Mankind Pharma, Tata Technologies Ltd, JSW Infrastructure, and Nexus Select Trust.
• In terms of total value created post listing, only 5 companies generated value of more than ₹4,000 Crore while 32 companies out of 78 caused market cap accretion of more than ₹1,000 Crore for FY24.
• The top 10 companies by value creation accounted for 46.9% of the total value creation by all IPOs in the FY24. While percentage returns are more spread out, larger issues outperforming has a much bigger wealth effect for investors.

FY24 has been a positive year in terms of value generation with the IPOs collectively account for an accretion of ₹1,09,663 Crore of market accretion to the stock markets.

IPO STARS FY24 – IPOS THAT COLLECTED MAXIMUM RUPEE RESPONSE

You can look at this list as the counterpoint to the oversubscription list. In the oversubscription list, the rankings are skewed in favour of smaller companies. When we look at rupee collections, it is in favour of the larger companies. Here is the list.

Name	IPO Listing	Issue Size (₹ Crore)	Subscription (X)	Issue Price	Market Price	Collections
Tata Technologies	30-Nov-23	3,042.51	69.43	500.00	1,136.60	2,11,241.47
DOMS Industries	20-Dec-23	1,200.00	99.34	790.00	1,700.00	1,19,208.00
JSW Infrastructure	03-Oct-23	2,800.00	39.36	119.00	252.20	1,10,208.00
Inox India Ltd	21-Dec-23	1,459.32	61.28	660.00	1,336.00	89,427.13
IREDA Ltd	29-Nov-23	2,150.21	38.80	32.00	158.50	83,428.15
Happy Forgings	27-Dec-23	1,008.59	82.63	850.00	921.20	83,339.79
Cello World Ltd	06-Nov-23	1,900.00	41.69	648.00	810.00	79,211.00
SBFC Finance	16-Aug-23	1,025.00	74.06	57.00	83.75	75,911.50
Mankind Pharma	09-May-23	4,326.36	15.32	1,080.00	2,325.00	66,279.84
Azad Engineering	28-Dec-23	740.00	83.04	524.00	1,308.80	61,449.60
IdeaForge Technology	07-Jul-23	567.29	106.06	672.00	727.00	60,166.78
Apeejay Surrendra Park	12-Feb-24	920.00	62.91	155.00	202.80	57,877.20
Exicom Tele-System	05-Mar-24	429.00	133.56	142.00	207.25	57,297.24
Netweb Tech	27-Jul-23	631.00	90.55	500.00	1,654.50	57,137.05
Jupiter Life Line	18-Sep-23	869.08	64.80	735.00	1,194.70	56,316.38
Utkarsh SFB	21-Jul-23	500.00	110.77	25.00	52.65	55,385.00
BLS E-Services Ltd	06-Feb-24	310.91	162.38	135.00	326.65	50,485.57
India Shelter Finance	20-Dec-23	1,200.00	38.59	493.00	602.00	46,308.00
ASK Automotive	15-Nov-23	834.00	51.14	282.00	296.00	42,650.76
Cyient DLM Ltd	10-Jul-23	592.00	71.35	265.00	704.25	42,239.20

Data Source: NSE / BSE (CMP: 04-April)

Here are some of the key takeaways from the ranking on total rupee collections across all the IPOs in FY24. It is a good measure of investor appetite and participation in the stock.

• Out of the 78 IPOs listed till date in FY24, the top 20 IPOs by total collections, accounted for 62.82% of the overall collections from IPOs in fiscal year FY24.
• The top 5 IPOs in terms of IPO rupee collections for the year are Tata Technologies, DOMS Industries Ltd, JSW Infrastructure, Inox India, and IREDA Ltd.
• This also dispels the myth that large sized companies with mega collections do not generate smart returns. In fact, all the five companies that top the list in terms of collections have generated more than 100% returns over the issue price.
• There were 3 IPOs that collected more than ₹1,00,000 Crore while a total of 17 IPOs collected more than ₹50,000 Crore. All these 17 IPOs have given positive returns post listing, although returns range from 395.31% at the top to 8.18% at the lowest level.

FY24 has been a positive year not only in terms of returns but also in terms of collections. FY24 surely sets the tone another robust year for IPOs in FY25. A lot will depend on market conditions, quality of IPOs and the pricing aggression.