September 2024: A Boom in IPO Activity
In September 2024, there was a significant increase in Initial Public Offerings (IPOs) in India, with 41 companies filing their IPO documents with the Securities and Exchange Board of India (SEBI). Major companies like NTPC Green, Hexaware Technologies, and Vikram Solar were among those filing, indicating strong confidence in the capital markets.
IPO Performance and Investor Sentiment
Out of 239 IPOs listed, 175 opened above their issue price, and by September 30, 183 continued to trade above their issue price. This reflects a positive market sentiment and strong investor interest.
Retail Investor Gains
Retail investors saw an average listing gain of 27%, which grew to 114% by the end of September. SEBI noted that 50% of shares allotted to individual investors were sold within the first week, with 70% sold within a year.
Impact of SEBI and RBI Policies
SEBI’s 2022 policy changes and RBI’s guidelines on IPO financing have reduced oversubscription rates and decreased applications from large investors. This has led to a more balanced market environment.
Doubts Revealed
IPO -: IPO stands for Initial Public Offering. It’s when a company sells its shares to the public for the first time to raise money.
NTPC Green -: NTPC Green is a part of NTPC, which is India’s largest energy company. NTPC Green focuses on renewable energy like solar and wind power.
Hexaware Technologies -: Hexaware Technologies is an Indian company that provides IT services and solutions to businesses around the world.
SEBI -: SEBI stands for Securities and Exchange Board of India. It is the organization that regulates the stock market in India to protect investors.
Retail investors -: Retail investors are regular people who buy and sell stocks or shares in the stock market, not big companies or professional investors.
RBI -: RBI stands for Reserve Bank of India. It is the central bank of India, which manages the country’s money supply and interest rates.
Oversubscription -: Oversubscription happens when more people want to buy shares in an IPO than the number of shares available. This can make it harder for everyone to get the shares they want.
