IPO Boom-Bust Cycle

Despite challenges such as economic uncertainties and geopolitical tensions in 2024, Indian IPO market gained momentum as the proceeds reached US $ 19.9 billion (an all-time historical high), thus reflecting its dynamic market and strong economic growth. It also delivered an average return of 37.1% thus outperforming many emerging markets. With many IPO’s receiving SEBI approval, it is hereby projected to raise INR 2 Lacs Crores in 2025.

However, Investors should be aware of the boom-bust cycle as history shows that aggressive fundraising often precedes major market declines due to some of the potential reasons-

“Easy-money” chasing companies lack strong fundamentals, thus setting the stages of corrections.
Offer for Sale dominates in such period signalling that promoters are cashing out rather than reinvesting.

Thought Centre

IPO Boom-Bust Cycle

Multi Asset Funds Investment Strategy

Gold vs Equities

FII vs DII in Indian Equity Market