NEW DELHI: The Indian IPO market has witnessed reduced subscription rates in recent months, majorly due to weak market conditions and poor listing performance, according to an Axis Capital report. The investors also mentions that investors are showing increased caution, indicating diminished confidence.
“A mix of disappointing IPO listing and a sharp decline in market sentiments has resulted in reduction in IPO subscription in last 2 months,” the report stated.
During FY2024, amongst the 54 listed IPOs, 38 companies maintain values above their initial offering price, indicating varied outcomes.
Analysis spanning July 2020 to November 2024 reveals that of 252 IPOs, 186 initially listed above issue price, 10 matched their issue price, whilst 67 fell below.
Additionally, 31 underperforming IPOs have recovered to trade above their initial offering prices as November 29 and 185 IPOs maintain values above their issue prices.
The IPO Monitor, tracking 237 companies listed between July 2020 and October 2024, recorded a 2.71 per cent reduction in their market capitalisation during November 2024, declining from Rs 39.72 lakh crore to Rs 38.68 lakh crore.
Recent performance trends highlights the necessity of robust company fundamentals and appropriate market entry timing.
Bajaj Housing Finance Limited’s IPO achieved 67 times subscription, while Hyundai Motor’s received modest retail interest at 2.37 times subscription. NTPC Green’s recent IPO listed at a modest 3.24 per cent premium.
Meanwhile, despite current challenges, numerous IPOs maintain positive long-term performance, though market stability remains crucial for renewed investor interest.
