New Delhi, Aug 26
Market activity in August remained strong, with 13 mainboard initial public offerings (IPO) raising Rs 15,200 crore and 28 SME IPOs raising Rs 1,345 crore -- the highest SME fundraise since September 2024.
However, most of the listing gains have been modest, indicating a cautious sentiment. Even as interest in new issuances remains, investor expectations are tempered due to global challenges and a slowdown in the domestic market, according to market experts.
Indian IPOs raised Rs 16,124 crore in July and Rs 17,688 crore in June. The highest fundraising from the SME space came from 28 companies that tapped the market. The level of funding is, however, down from Rs 1,205 crore in July and Rs 1,300 crore in June.
Analysts attributed the rise in IPO activity to higher allocations from foreign and domestic investors who sought opportunities in the primary market due to stretched valuations in the secondary market. New issuances provided an appealing entry point into fundamentally strong businesses for many investors. Most issues were priced at a premium, resulting in limited gains on listing day.