Fund raising by large corporates with minimum post issue paid-up capital of more than ₹10 crore through Initial Public Offerings (IPOs) in 2023 dropped 17% to ₹49,434 crore by 57 companies compared with ₹59,303 crore raised by 40 IPOs in 2022, according to primedabase.com data.
However, if Life Insurance Corporation’s 2022 IPO is excluded, then fund raising in 2023 would be up by 28% as per data.
“An analysis shows overall public equity fund raising in 2023 increased by 59% to ₹1,44,283 crore as against ₹90,886 crore in 2022” said Pranav Haldea, MD, Prime Database Group in a statement.
40 of the 57 IPOs hit the market in the last four months of 2023. While the largest IPO was from Mankind Pharma (₹4,326 crore), followed by Tata Technologies (₹3,043 crore) and JSW Infrastructure (₹2,800 crore), the smallest was from Udayshivakumar Infra (₹66 crore).
The average deal size reduced significantly to ₹867 crore comparison with ₹1,483 crore in 2022 and ₹1,884 crore in 2021, the data revealed.
In 2023 BFSI sector had limited presence in the equity market and only two New Age Technology Companies (NATC) Yatra and Mama Earth’s parent hit the bourses.
53 of the 57 IPOs are trading above the issue price (closing price of January 1, 2024) with an average return of 46%, Mr. Haldea said.
Offers for sale by PE/VC investors at ₹10,968 crore in 2023 accounted for 22% of the total IPO amount. Offers for sale by private promoters at ₹15,196 crore accounted for another 31% of the IPO amount.
The amount of fresh capital raised in IPOs in 2023 was ₹20,662 crore or 42% of the total amount.
2023 saw 87 companies filing their offer document with SEBI for approval, compared with 89 in 2022. For 2024, the pipeline continues to remain strong. 27 companies proposing to raise ₹28,500 crore are currently holding SEBI approval while another 36 companies looking to raise about ₹40,500 crore are awaiting SEBI approval.
