Best Performing Sectors in IPO Landscape in 2024

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The Indian IPO market in 2024 has demonstrated remarkable resilience and expansion, despite prevailing macroeconomic volatilities. Sustained capital influx, driven by investor confidence and structural economic reforms, has positioned certain industries at the forefront of initial public offering activity. This analysis identifies the five best performing sectors, assessed based on aggregate capital mobilization and post-listing financial performance.

Best Performing Sectors in 2024

1. Automobile & Auto Components

The automotive sector commanded the highest capital inflows, amassing INR 36,585.86 crore across six IPOs. This dominance is attributable to the accelerated transition toward electric vehicles (EVs), augmented by governmental incentives such as the Production-Linked Incentive (PLI) scheme and the broader push for sustainable mobility. Hyundai Motor India’s IPO, valued at INR 27,858 crore, was the largest in the sector and also the biggest IPO of all time

However, the sector’s relatively modest average return of 1.83% signals tempered market reception, likely due to valuation concerns and extended gestation periods for profitability in emerging EV enterprises.

2. Consumer Services

Consumer services exhibited robust growth, raising INR 32,566.75 crore through ten IPOs. The sector’s substantial post-listing performance, with an average return of 28.41%, underscores shifting consumer behaviour and the accelerated adoption of digital platforms.

Companies within e-commerce, fintech, and technology-driven service ecosystems have garnered strong investor interest, reflecting structural demand shifts and a preference for scalability in business models. With an issue size of INR 11,327.43 crore, Swiggy was the biggest IPO in this industry. The stock yielded a 16.92% return.

3. Financial Services

Financial services continued to be a cornerstone of capital market activity, securing INR 22,011.38 crore across 13 offerings. This segment’s average return of 25.40% underscores sustained investor confidence in fintech proliferation, digital banking, and alternative lending mechanisms. The ascent of non-banking financial corporations (NBFCs), along with heightened penetration of wealth management and insurance platforms, has facilitated extensive market engagement, reinforcing the sector’s growth trajectory.

The largest IPO in the finance industry was launched by Bajaj Housing Finance, which achieved an outstanding 135.71% return on the listing day. It was worth INR 6,560 crore.

4. Capital Goods – First in Best Performing Sectors in 2024 (Listing Returns)

Although ranking fourth in absolute capital raised (INR 12,074.23 crore), the capital goods sector exhibited the highest average return at 66.88%, the strong post-listing indicates Capital Goods as one of the best performing sectors in 2024. The sector’s stellar performance can be attributed to robust governmental infrastructure expenditures, “Make in India” initiatives, and increased private sector participation in industrial automation and defence manufacturing.

Investors have demonstrated heightened enthusiasm for companies engaged in precision engineering, heavy machinery, and high-value industrial technologies. The biggest IPO in this industry is that of Waaree Energies, which is valued at INR 4,321.44 crore. On the first day of its launch, it achieved listing gains of 55.62%.

5. Healthcare

Healthcare remained an integral segment of IPO activity, securing INR 11,146.65 crore through eight offerings. The sector’s average return of 29.75% highlights consistent investor conviction, driven by advancements in pharmaceuticals, biotechnology, and diagnostic innovations. The post-pandemic recalibration of healthcare infrastructure and a growing emphasis on medical technology have further solidified this sector as a high-growth avenue.

Sai Life Sciences had the biggest IPO in the healthcare industry, with an issue size of INR 3,042.62 crore. The issue yielded a 39.28% return on listing day.

Conclusion

“The 2024 IPO landscape underscores the diversification of investment opportunities across traditional and emerging sectors. While capital goods emerged among the best-performing sectors, delivering exceptional post-listing gains, consumer services and financial services maintained stable yet lucrative growth trajectories. The automotive sector, despite its capital dominance, faces a protracted maturation phase driven by evolving regulatory frameworks and technological transitions.

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Looking forward, sustained regulatory clarity, institutional participation, and sector-specific growth dynamics will continue shaping India’s IPO trajectory. Investors are advised to conduct comprehensive due diligence, incorporating macroeconomic indicators and industry-specific trends, to optimize portfolio allocation and long-term value realization. Identifying the best performing sectors will be crucial for maximizing returns in an evolving market landscape.”

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