August IPO frenzy: 10 companies raise ₹17,048 crore, largest since May 2022

In August, ten companies collectively raised ₹17,048 crore via IPOs, the largest primary market fundraising since May 2022.

In 2024, 56 initial share sales raised ₹65,000 crore against just 20 IPOs, raising more than ₹15,051 crore from January to August 2023.

54% of IPO shares allotted to investors sold within a week, SEBI study finds

In another development, a study by markets regulator SEBI highlighted that investors (apart from anchor) sell 50% of 1PO shares allotted to them by value within a week.

The study encompassed data from 144 IPOs listed between April 2021 and December 2023. During the study period, 144 IPOs collectively raised ₹2.13 lakh crore. Notably, 65% of the total issue size was Offer for Sale (OFS), through which the pre-existing shareholder sold their shares instead of the company raising the money.

According to the study, "About 54% of IPO shares (in value terms) allotted to investors (excluding anchor investors) were sold within a week from listing".

Individual investors sold 50.2% of shares allotted to them within a week from listing, non-institutional investors (NIIs) offloaded 63.3% shares, and retail investors sold 42.7% shares.