India records highest mainboard listed cos at over 5,450 in first half of 2024, captures 25% of global IPO volume | Stock Market News

In the first half of 2024, India recorded the highest number of mainboard-listed companies, more than 5,450 globally, which is around 25 per cent of global IPO listings.

The global IPO market reached its peak in 2021. However, India has been an outlier with listings in the last year due to solid demand and domestic inflows among the emerging sectors and companies, an ANI report said, citing wealth management firm Angel One Wealth.

In terms of global markets, 2021 marked significant changes for IPOs as 2,388 companies raised USD 453.3 billion through it, which is the highest in last 20 years, it added.

The report noted that almost 178 companies filed for IPOs on stock exchanges, this is followed by China at 103, the US at 21, and the UK at 22.

“BSE IPO index with 348% absolute gains has outperformed benchmark BSE 500 index’s 165% gain by wide margin, thanks to strong listing gains,” the report noted.

Sector-wise performance

Small and Medium Enterprise Initial Public Offering or SME IPOs have performed really well.

“Average listing gains in SMEs have skyrocketed from 2 per cent in 2019 to 74 per cent in 2024, while average listing gains in mainboard IPOs peaked out in 2020 and have been range bound around 30 per cent since then,” the report said

Retail and consumer product companies have tried to diversify whereas industrial products, financial services and healthcare sectors have utilised IPO efficiently, it said.

In a report by market regulator Sebi it was stated that investors showed more disposition effect in selling shares from initial public offerings (IPOs) that reported positive listing gains compared to ones that showed losses. 

Sebi also analysed investor behaviour in IPOs and covered data from 144 IPOs listed from April 2021 to December 2023. According to the study, returns on shares have influenced trading behaviour of investors.