The 59 IPOs collectively achieved an average listing gain of 26.3%, with their cumulative average gain reaching 45% as of December 29. Notably, a mere four out of the 59 main-board IPOs were observed to be trading below their respective issue prices.
In a year marked by key equity benchmarks scaling new heights and rallying nearly 20%, boosting investors’ wealth by close to Rs 82 trillion, IPO enthusiasts had much to celebrate. 2023 stood out as an exceptional year for primary market investors, witnessing 59 companies hitting the market, raising a cumulative Rs 54,000 crore. These offerings returned over 45% more than their issue prices on average, outperforming benchmark indices that rose approximately 20% throughout the year.
As of December 29, the 59 IPOs boasted an average listing gain of 26.3%, with an overall average gain of 45%. Impressively, only four out of the 59 main-board IPOs traded below their issue prices by the year’s end. Notably, 23 of these IPOs surged by more than 50% since listing, with nine of them yielding over two-fold gains over the issue price.
The standout performer was the lesser-known Indian Renewable Energy Development Agency (Irdea), achieving a remarkable 221.3% gain over its listing price. Cyient DLM and Netweb Technologies followed with gains of 154.5% and 140.7%, respectively. Tata Technologies, a notable FPO, recorded a threefold jump over its issue price and sustained a gain of over 136%. Realty player Signature Global also demonstrated a robust performance, delivering a 128% gain over its listing price.
Dalal Street, fueled by strong macroeconomic fundamentals, political stability, positive corporate earnings outlook, and signals from the US Federal Reserve, emerged as the world’s second-best market in 2023, with 240 issues raising over USD 60 billion. The BSE IPO index surged by an impressive 41% during the year, driven by a massive rally in mid and small-cap stocks.
The record-breaking market activity, encompassing 59 main-board issues and 182 SME issues, translated to a 55.8% year-on-year increase in total IPOs in 2023, the highest globally. This fervor contributed to a nearly USD 1 trillion addition to Dalal Street’s market capitalization, reaching USD 4.3 trillion or Rs 370 trillion, a nearly 30% YoY increase.
Market Milestones in 2023: Record Gains and Sensex Soars to New Heights as per IPO
This stellar performance not only marked the eighth consecutive year of gains but also enriched investors by a staggering Rs 81.90 trillion in 2023. In sharp contrast, 2022 saw a gain of Rs 16.38 trillion as the BSE barometer closed the year with a modest 4.44% increase. The Sensex, reaching its all-time high of 72,484.34 on December 28, showcased monthly gains in eight out of twelve months, culminating in a remarkable year-end rally. November and December, in particular, proved to be the most rewarding, with gains of 4.87% and 7.83%, respectively.
Indeed, 2023 emerged as an exceptional year for primary market investors as 59 companies went public, collectively raising Rs 54,000 crore. These offerings surpassed expectations by delivering an average return of over 45% above their respective issue prices, as indicated by exchange data.
