Stocks News: Initial public offerings (IPOs) that launched on the main bourses or SME exchanges during the first half of 2024 have provided strong returns to investors, benefiting from the ongoing rally in the domestic equity market. Vruddhi Engineering Works emerged as the top performer, with its shares soaring 347% to Rs 313.20 on June 20 from the issue price of Rs 70. The company debuted on the BSE SME exchange on April 3, 2024.

Another standout SME performer is KP Green Engineering, which saw a 311% rally. Shares of the company, which went public in March 2024, were trading at Rs 592.20 on June 20, 2024, up from the issue price of Rs 200. In comparison, the benchmark BSE Sensex has gained nearly 7% year-to-date.

Commenting on the SME sector, Amit Kumar, Founder & CEO of MSMEx, advised that when adopting a long-term investment strategy, investors should focus on growth-oriented founders and key business metrics in the SME space. We have a positive outlook on the sunrise and technology sectors.

Jyoti CNC Automation, which was listed in January 2024, has seen its shares surge over 304% to Rs 1337.65 from the issue price of Rs 331. Founded in 1991, the company is a leading global manufacturer of metal-cutting computer numerical control (CNC) machines. -Stocks News

Data also revealed that several other companies, including Exicom Tele-Systems, Shri Balaji Valve Components, Rudra Gas Enterprise, Greenhitech Ventures, Storage Technologies & Automation, Pune E-Stock Broking, BLS E-Services, and Manoj Ceramic, have seen their share prices more than double compared to their issue prices. These companies were also listed on the bourses during the first half of 2024.

Market

Market experts are optimistic about the future of the primary market in India. Mahavir Lunawat, Managing Director of Pantomath Capital Advisors, stated, With a robust domestic economy, a thriving stock market, and increasing participation from retail investors, the country is set for a significant surge in the IPO market. We are on the cusp of sustained, long-term momentum, with this year potentially being the best for IPOs.

So far, India’s solid macroeconomic environment and promising growth prospects have created an ideal backdrop for this vibrant IPO market. Additionally, there is robust participation from both domestic institutional investors and retail investors, Lunawat noted.  -Stocks News

Other significant gainers include Bharti Hexacom, JNK India, Royal Sense, Shree Marutinandan Tubes, Emmforce Autotech, Le Travenues Technology, and Jana Small Finance Bank, which have all seen increases between 75% and 100% above their respective issue prices.

Data indicates that over 15 companies have received SEBI approval for IPOs, aiming to raise more than Rs 10,000 crore from the primary market. Additionally, up to 40 companies have submitted their documents to the market regulator to launch IPOs, collectively seeking to raise over Rs 50,000 crore.

Also Read: RVNL shares

According to primedatabase.com, companies like SPC Life Sciences, Fincare Small Finance Bank, Western Carriers (India), Onest, Shiva Pharmachem, Indo Farm Equipment, Arkade Developers, Denta Water & Infra Solutions, and Vraj Iron & Steel are either approved by the regulators or are about to launch their IPOs soon. The BSE notes that the public offering of Vraj Iron & Steel is set to open for subscription on June 26.