IPO 2024: Best & Worst Performers

The year 2024 turned out to be an exciting yet unpredictable year for India’s Initial Public Offering (IPO) market. It showcased stories of meteoric rises and disappointing tumbles as companies from various sectors sought public capital. Let’s dive into the standout performers and the not-so-successful listings, reflecting on what set them apart or held them back.

Top IPO Performers of 2024

1. Jyoti CNC Automation: Turning Precision into Profits

Jyoti CNC Automation was a blockbuster. Launched in January, this IPO was oversubscribed 28 times, raising ₹1,000 crore. Its stock price surged by a phenomenal 309%, making it a darling of the market. What fuelled this success? The company’s impressive ₹4,289 crore order book, nearly half of which stems from the booming aerospace sector, combined with strategic expansion plans in the U.S. market, struck all the right chords with investors.

2. KRN Heat Exchangers: Heating Up the Markets

Another remarkable success story was KRN Heat Exchangers, whose shares skyrocketed by 224% since its October debut. On listing day, investors witnessed a jaw-dropping 117.5% gain. Backed by a ₹342 crore IPO that was subscribed a staggering 215 times, KRN’s plans to increase production capacity sixfold have positioned it as a future-ready industry leader.

3. Premier Energies: Riding the Renewable Wave

In September, Premier Energies lit up the renewable energy space. The IPO raised ₹2,830 crore and delivered a 192% return post-listing. The company’s robust ₹6,233 crore order book for solar projects reflects a promising shift toward green energy, making it a favourite among sustainability-focused investors.

Underperformers of 2024

1. Popular Vehicles and Services: Losing Traction

This IPO made a lacklustre debut in March, listing at a 6.4% discount. Since then, the share price has nosedived by 44.6%. Despite having a long-term growth vision, subdued fiscal expectations and tepid investor sentiment weighed heavily on its performance.

2. Capital Small Finance Bank: A Missed Opportunity

For Capital Small Finance Bank, February’s listing was far from smooth. The IPO, priced at ₹523 crore, saw a 7.2% discount on listing, and shares have since plummeted by 42%. Though the bank has projected a strong loan book growth for 2025, it couldn’t convince investors to bet big on its future.

3. Western Carriers (India): Off Track

Western Carriers (India), a logistics company, entered the market in September at a 7.3% discount. The stock has fallen by 35% since. While the company’s long-term customer base generates 80% of its revenue, its growth prospects seemed underwhelming to investors.

 

A Broader Look: The Mixed Bag of Mega-IPOs

The year also saw some highly anticipated mega-IPOs, such as Hyundai Motor India’s record $3.3 billion offering. Despite the hype, the listing faced a modest 4% dip on day one, highlighting the challenges even large players face in the volatile market.

Lessons from 2024’s IPO Market

India’s IPO market this year has been a reminder of how critical fundamentals and market timing are. Companies like Jyoti CNC Automation, with clear growth strategies and strong order books, reaped the rewards. On the other hand, businesses like Capital Small Finance Bank struggled to inspire confidence despite their long-term potential.

As we wrap up 2024, it’s clear that while the IPO market holds immense promise, success hinges on delivering more than just a good story—investors demand solid numbers, clear plans, and compelling execution.

 

In 2024, the IPO market wasn’t just about raising capital; it was about telling a story that resonated with India’s increasingly discerning investors. For the winners, the rewards were sweet. For the laggards, it’s a lesson for the next innings.