India’s primary market had its busiest month in nearly 28 years this September, with 25 companies going public on the mainboard, the highest since January 1997, which saw 28 listings. SME activity also reached a milestone, with 53 IPOs raising Rs2,309 crore, the largest single-month total by both volume and value, according to stock exchange data. In total, 25 IPOs garnered over Rs13,300 crore during the month. Simultaneously, SMEs raised Rs9,129 crore through 207 listings, exceeding prior annual fundraising records with a quarter of the year still to go. Analysts attribute this surge to robust foreign institutional inflows and steady demand from retail investors and mutual funds, despite volatility in secondary markets.
Mutual funds, insurers, pension funds, and retail investors are engaging with new issues amid concerns over valuations in the secondary market. In the wider market, the Sensex has increased from 80,364 to 80,795, with the BSE MidCap and BSE SmallCap outperforming benchmark indices. Additionally, India has risen to third place globally in tech startup funding, only behind the United States and the United Kingdom, and ahead of Germany and France. In its latest board meeting, Sebi decided to amend the minimum public shareholding norms for large companies planning IPOs, granting those with a market capitalization between Rs50,000 crore and Rs1 lakh crore extended time to fulfill public shareholding requirements.