Roaring debuts mark end to bumper year for IPOs in India

Over 330 initial public offerings, $20 billion of proceeds and more than $160 billion addition in country’s market value, sums up a bumper year for India that is set to further strengthen its position among top global destinations for capital raising.

With six firms debuting on the bourses Friday and at least three more lined up for listing over the last two days of the year, India is set to close 2024 with a record number of IPOs and proceeds, according to data compiled by Bloomberg.

Credit: Bloomberg

Investment bank DAM Capital Advisors Ltd. was among the key listings on Friday. The firm, which is a direct beneficiary of the boom in the country’s equity market, gained 47 per cent over its IPO price. The IPO raised about 8.4 billion rupees ($98 million) for existing investors including Multiples Alternate Asset Management, while founder Dharmesh Mehta also sold some shares.

Engineering, procurement and construction firm Transrail Lighting Ltd., which too raised about 8.4 billion rupees, ended the day 28 per cent above its issue price. Pollution control firm Concord Enviro Systems Ltd. closed 18 per cent over its issue price. The firm had raised 5 billion rupees.

The biggest gainer among the debutants was industrial machine maker Mamata Machinery Ltd., which was also the smallest of mainboard issues at 1.8 billion rupees. The shares closed about 160 per cent above its IPO price.

Newmalayalam Steel Ltd., which made its debut in the segment for tiny companies was the only one to close in the red. The weakness reflects the cautious mood for tiny companies in general following a spate of regulatory actions recently.

Last week, market regulator the Securities and Exchange Board of India suspended trading in Bharat Global Developers Ltd. after the company made fake disclosures to stock exchanges relating to order wins.