Upcoming Fiscal Mind-Boggling For Primary Markets, Says PRIME Database's Prithvi Haldea

India's IPO market has been riding a growth wave in recent years, with companies raking in crores. At the centre of this is a mix of market stability, seasoned companies, and a cautious approach to pricing, according to Prithvi Haldea, founder chairman of PRIME Database, and Pranav Haldea, the managing director of the company.

"One of the main reasons is secondary market stability," said Prithvi Haldea. "If the secondary markets are in bad shape, IPOs just don't happen. That's historically proven."

Gone are the days when companies could jump into the IPO pool on a whim, he added. Today, most firms eyeing public listings have weathered business cycles for five to 10 years. This, coupled with stricter governance practices, has built investor confidence. "There is a lot of governance today, and most companies are cautious with their pricing," Haldea added.

The results have been stellar. Most IPOs not only list at a premium but also continue to trade upwards, drawing in more investors and encouraging more companies to go public, the veteran stated.

Pranav Haldea highlighted that fairness in valuations has been key. "Compared to industry peers, many IPOs have been fairly valued. It's not just about listing-day gains; it can be seen in their post-listing performance too."

The data is impressive: IPOs from 2019 onwards have delivered an average return of 500% as of this year. Even in the short term, last year's IPOs averaged a 30% gain on listing day, with many sustaining their upward trajectory, added Haldea.

The National Stock Exchange has set a record for the highest number of Initial Public Offerings in the entire continent and has also raised the highest equity capital in the primary market globally in 2024, as per their media statement.

In total, the exchange saw 268 successful IPOs, out of which 90 are in mainboard listing and 178 are the IPOs of small and medium enterprises last year and raised Rs. 1.67 lakhs crores. However, the biggest IPO at NSE remained that of Hyundai Motor India Ltd, worth over Rs 27,000 crore, which was also the second biggest in the world.