India's largest IPO- let's know it here!
India's largest IPO in 2024 was hyundai Motors, in which the company raised ₹27,870 crore. This IPO emerged as the second largest IPO not only in india but also in the world. This issue further strengthened the indian IPO market. Hyundai's IPO proves that indian companies are now making their mark internationally and are getting the trust of global investors. This shows that indian companies are now making their mark not only in the domestic market but also around the world and investors from all over the world are excited to invest in their shares.
Growing importance of SME IPO
SME (Small and Medium Enterprises) companies have also played an important role in India's IPO market. From 2012 to 2024, the market size in the IPO of SME companies has increased 4.5 times to ₹100 crore and the revenue of these companies has also increased three times to ₹70 crore. This means that the contribution of small and medium industries has now increased significantly in the indian market. IPOs of SME companies made investors aware of these companies and created a new environment for investment. This change is further driving the success of this sector, and the confidence of indian investors to invest in SME companies is also increasing.
Falling median market cap of IPO companies
However, a worrying trend has been that the median market cap of companies launching IPOs has declined continuously over the last three years. It was ₹ 3,800 crore in 2021, which fell to ₹ 3,000 crore in 2022 and ₹ 2,770 crore in 2023. This means that the market capitalization of companies launching IPOs is decreasing compared to earlier.
One reason for this could be that many companies are not yet fully profitable and investors may doubt their financial performance. However, despite this, the indian IPO market has performed very well compared to other countries.
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