New Delhi, Oct 19 (SocialNews.XYZ) India’s primary market is on a remarkable growth trajectory, fuelled by a wave of investor interest and a surge in initial public offering (IPO) activity, experts said on Saturday.
The month of September was quite busy, with 15 draft red herring prospectus (DRHP) filings submitted on just one day — the final day of last month — making it one of the most active periods for IPOs in over 14 years.
“So far in 2024, we’ve seen 63 initial public offerings, most of which have performed well after listing. Despite the challenges of a volatile market and global uncertainties, investor confidence in these offerings remains strong,” said an IPO commentary from Pantomath Capital Advisors.
The positive momentum is expected to carry forward. With a healthy pipeline of IPOs, strong investor demand, and a sense of optimism among both promoters and investors, the outlook for the capital markets looks bright, the report noted.
This week, Hyundai Motor India’s much-anticipated IPO was overall subscribed 2.37 times. The quota for qualified institutional bidders (QIBs) was booked 6.97 times, while the reservation for employees was subscribed 1.74 times.
This IPO is a pure offer for sale (OFS). It is the first offer from an automaker to list in India in over two decades. Due to being OFS, the entire proceeds will go to the promoter. Ahead of the public issue, Hyundai Motor India raised Rs 8,315 crore from anchor investors. It allotted 4.24 crore shares at Rs 1,960 apiece to 225 anchor investors, according to a company statement.
The IPO was open for bidding between October 15 and October 17. The company offered its shares in the fixed price band of Rs 1,865-1,960 per share with a lot size of 7 shares. The car maker raised about Rs 27,856 crore via its primary offering.
Source: IANS
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