New Delhi: Indian IPO market Subscription rates have declined in recent months, largely due to weakness market conditions According to a report from Axis Capital, the listing performed poorly. Investors also mentioned that investors have become more cautious, indicating weakening confidence.
“Disappointing IPO listings and a sharp decline in market sentiment have led to lower IPO subscriptions over the past two months,” the report noted.
In FY24, 38 companies out of 54 listed IPOs maintained their valuations above their initial offer prices, indicating varying results.
Analysis from July 2020 to November 2024 shows that of 252 IPOs, 186 were initially listed at a price higher than the issue price, 10 were at the same price, and 67 were lower than the issue price.
In addition, as of November 29, 31 underperforming IPOs have recovered to levels above their initial offering prices, and 185 IPOs are still valued above their issue prices.
IPO Monitor tracked 237 companies that went public between July 2020 and October 2024 and found that their number of listings fell by 2.71%. Market value During November 2024, it fell from Rs 3,972 crore to Rs 3,868 crore.
Recent performance trends highlight the need for solid company fundamentals and appropriate market entry timing.
Bajaj Housing Finance Limited’s IPO was subscribed 67 times, while Hyundai Motor’s IPO received moderate retail interest at 2.37 times. NTPC Green’s recent IPO was listed at a modest premium of 3.24%.
Meanwhile, many IPOs have maintained positive long-term performance despite current challenges, although market stability remains critical to restoring investor interest.
