New record of IPO after the current Lok Sabha elections

Mumbai: A new record is being seen in the month of May in terms of initial public offering (IPO) for the 2024 Lok Sabha elections. During the Lok Sabha elections from 2004 to 2019, no public offering was seen in May, whereas during the current Lok Sabha elections, three medium-sized companies are going to raise Rs 6000 crore through public offering in May.

The primary market remained sluggish during the April to June period of 2004, 2009, 2014 and 2019 due to uncertainty over the election results.

However, this trend seems to be breaking in 2024. An investment banker said investors generally avoid public offerings in uncertain times because they want stability. However, along with the secondary market in the country, the primary market is also active.

Aadhar Housing Finance, IndiGen and TBO Tech plan to raise around Rs 6,300 crore from the market next week. Other companies are expected to raise a total of Rs 10,000 crore from the primary market in the current month. The market bounced back from March lows.

So far in 2024, 24 companies have raised a total of Rs 18,000 crore.

Market participants do not like recession. Any bearish situation in the secondary market affects investor sentiment in the primary market.

Elections were a big factor this year. There is increased enthusiasm among investors, especially retail investors, in the country's stock markets, due to which companies are not hesitating to invest capital.

Investors' morale is boosted by expectations of the current government coming to power at the Centre. Investors believe that after the elections, economic reforms will be carried out in the country which will make the situation favorable for the stock market.

The interest rate situation in the country and the geopolitical environment will also be determining factors for the market movement. Many companies have received regulatory approval for public offerings and the IPO market is expected to remain strong this year with the current government in place. During the four Lok Sabha elections from 2004 to 2019, it was not certain who would come to power.

IPO after elections

Statistics from April to June