September Sees Record-Breaking IPO Activity in 14 Years

September has been the busiest month for IPOs in both the mainboard and SME segments in the past 14 years, with over 28 companies entering the market. The Reserve Bank of India's September Bulletin highlights significant interest in SME IPOs and notes India's global leadership in IPO volumes and proceeds in 2024.

According to the latest Reserve Bank Bulletin, September is shaping up to be the busiest month for IPOs in 14 years, with over 28 companies hitting the market on both mainboard and SME segments.

The Bulletin discusses significant shifts in financial markets, particularly noting a surge in interest for SME IPOs, driven largely by domestic mutual funds and marked by massive oversubscriptions.

The article cites a SEBI study indicating that 54% of IPO shares were sold within a week of listing. It also highlights that India led globally in terms of IPO volumes, accounting for 27% in the first half of 2024, and 9% of total proceeds.

Investor enthusiasm was evident as a housing finance company IPO in mid-September saw bids of over Rs 3 lakh crore. Despite some corrections based on global trends, the outlook for the secondary market remains bullish.

The article, authored by a team led by RBI Deputy Governor Michael Debabrata Patra, also noted significant investment from global funds in Indian debt markets since May 2024. Corporate debt issuances, however, remained low as issuers awaited a US rate cut.

(With inputs from agencies.)