The retail investors gained strong muscle power as a result of their roaring participation in the primary market in 2023.
In value terms, retail investors applied for shares worth a staggering Rs 1.49 lakh crore, which was a whopping 203% higher than the total IPO mobilisation in 2022, according to Prime Database.
The average number of applications from retail investors in initial public offers (IPO) increased to 13.21 lakh, which was more than double of 5.66 lakh in 2022.
The highest number of applications from retail investors were received by Tata Technologies at 52.11 lakhs, followed by DOMS Industries at 41.30 lakhs, and INOX India at 37.34 lakhs.
Through initial public offering (IPO), companies raised Rs 54,114 crore in 2023, which includes both the main board and SME. However, this was nearly 12% lower than 2022, primarily due to the mega IPO of insurance major LIC.
About 57 corporates raised Rs 49,434 crore through main board IPOs in 2023, which was 17% lower in 2022. However, excluding the mega IPO of LIC, which came out in 2022, mobilisation through IPO increased by 28%.
As many as 40 out of the 57 IPOs came in just four months in 2023.
The largest IPO in 2023 was from Mankind Pharma, which mopped Rs 4,326 crore, followed by Tata Technologies at Rs 3,043 crore, and JSW Infrastructure at Rs 2,800 crore.
While companies from multiple sectors tapped the IPO market in 2023, one key sector that had a limited presence was BFSI with just Rs 6,190 crore. The sector represented just 13% of the total fundraising in 2023 compared to 46% in 2022. New age technology companies too, were few at just two namely Yatra and Mamaearth.
Other Instruments
Fund mobilisation through offer for sale surged by nearly 90% in 2023 to Rs 21,370 crore. Meanwhile, fundraising through qualified institutional placement (QIP) rose four times to Rs 57,324 crore in 2023.
Fundraising through infrastructure investment trusts (InvIT) and real estate investment trusts (ReIT) jumped sharply higher to Rs 11,474 crore in 2023 from Rs 1,166 crore in 2022.
The overall fundraising through equity in India surged by a whopping 59% year-on-year in 2023 to Rs 1.44 lakh crore, thanks to strong momentum in equities.
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