The primary market is experiencing an unprecedented boom in 2024, setting new records and thriving alongside the secondary market. In a remarkable turn of events, the first half of the year has witnessed a surge in Initial Public Offerings (IPOs), culminating in three significant IPO closures this week. This achievement caps the best first half in 17 years, underscoring the robust growth and investor confidence in the market.

According to Prime Database, a trusted source for IPO market data, 37 companies from various sectors have collectively raised an impressive US$ 3.83 billion (Rs. 32,000 crore) during this period. This figure represents a fourfold increase compared to the first half of the previous year, a testament to the strong liquidity and investor interest, both from foreign and domestic sources.

Unlike previous election years, where IPO markets typically slowed down due to uncertainty, 2024 has defied this trend. Bankers attribute this to greater certainty regarding the election outcome, which has emboldened issuers to proceed with their public offerings without hesitation.

Among the notable IPOs, Bharti Hexacom stands out, raising the largest amount at US$ 512.3 million (Rs. 4,275 crore). Following closely is Aadhar Housing Finance, which garnered US$ 359.5 million (Rs. 3,000 crore). On the other end of the spectrum, the smallest IPO came from Vibhor Steel Cubes, which raised US$ 8.6 million (Rs. 72 crore). Despite the surge in total funding, the average deal size saw a slight decrease from US$ 107.4 million (Rs. 896 crore) in the first half of 2023 to US$ 102.9 million (Rs. 859 crore) this year.

The overall market performance has been robust, with the Sensex gaining 6.8% and the Nifty rising 8.1% so far in 2024. Newly listed companies have also performed well, as evidenced by the BSE IPO index's impressive 21.8% rise this year. The financial sector has been particularly dominant, raising US$ 944.2 million (Rs. 7,879 crore) and accounting for a quarter of the total capital raised.

Looking ahead, market experts anticipate a possible pause in IPO activity before the announcement of the Union Budget. However, the pipeline remains strong, with high-profile names such as Swiggy, Hyundai India, and Ola preparing for their market debuts. This ongoing momentum indicates a vibrant and dynamic primary market, poised for continued growth and investor interest.

In summary, the IPO market in 2024 is breaking records and setting new standards, driven by substantial funding, strong investor confidence, and a favorable economic environment. With significant capital raised and more high-profile IPOs on the horizon, the primary market is well-positioned for continued success.

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