Key Points

Backed by improving macroeconomic conditions and strong investor participation, this revival highlights the resilience of Indian markets amid global uncertainties.

Three mainboard IPOs were launched in May, collectively raising over Rs 5,600 crore. Each public issue had an average size of around Rs 1,750 crore, according to the report.

Interestingly, all the IPOs came from the consumer discretionary sector, a trend that continues from FY25, during which this sector contributed 40 per cent of the total capital raised through IPOs.

All three IPOs also made strong debuts in the stock market, adding over Rs 20,000 crore to the overall market capitalisation.

Another noticeable shift was in the nature of capital raised. Around 93 per cent of the funds came through fresh issuances, a significant jump from just 35 per cent in FY24.

This indicates that companies are now more focused on raising new capital rather than offering existing shares.

Investor interest remained strong, especially from institutional players. Qualified institutional buyers (QIBs) received 67 per cent of the allocations, while retail individual investors (RIIs) and non-institutional investors (NIIs) received 21 per cent and 12 per cent respectively.

The SME segment also continued its upward trend. Six new companies got listed on the NSE Emerge platform in May.

The total market capitalisation of the SME segment crossed Rs 2 lakh crore, with Rs 12,000 crore added during the month alone.

In terms of overall market fundraising, follow-on equity offerings fell to Rs 3,750 crore in May, compared to Rs 49,000 crore in April.

Meanwhile, the debt market remained active, with issuances totalling Rs 1.3 lakh crore.

Commercial papers (CPs) accounted for 54 per cent of this, while non-convertible debentures (NCDs) made up the remaining 46 per cent.

The renewed market activity was supported by multiple macroeconomic tailwinds, including easing inflation, a record surplus transfer by the RBI, and positive trade developments with major economies like the UK, US, and the EU.

However, the report also cautioned that ongoing geopolitical tensions in West Asia could pose risks to future market sentiment.

- IANS