2024’s Textile IPO boom: 16 companies listed – Here’s why!

The year 2024 has been a busy one for India’s stock market, with a huge rise in IPO activity. Data from Trendlyne shows that 302 companies (till November) have raised funds this year, compared to 238 listings in 2023. Out of these 302 IPOs, 204 (or 67.5 per cent) are now trading at prices higher than their issue prices.

There has also been an increase in Demat accounts. In September, 4.4 million new accounts were opened, bringing the total to 175.4 million. This means an average of 4 million new accounts have been opened every month since the beginning of the current fiscal. Reports underline that following the US, India’s IPO fundraising so far this year is the second highest across the world.

Amongst the sectors taking advantage of this IPO boom is textiles. More than 16 small and medium-sized textile and apparel companies have gone public this year, seeking funds for expansion and growth. These companies deal in a variety of products including basic textiles, recycled yarn, apparel, home furnishings, brands, retailers, trims and technical textiles.

The expensive valuations in the secondary market, growing interest of retail investors, strong returns in many cases and institutional investors having excess liquidity pushed the companies for IPOs.

Also Read: 40 textile and apparel companies in Tamil Nadu (India) keen for IPOs

Becoming more transparent, organised, growing market visibility, choosing to go public are some of the factors that have made companies turn to the equity market. Besides, the ongoing issues being faced in raising finance through banks have given further momentum to this rising trend.

The high potential of India’s textile and apparel industry have pushed promoters as well as the investors to encash upon the opportunities.

Sanjay Jain, MD, TT Limited who is optimistic about Indian textile and apparel market’s growth story said, “Both reasons worked for the industry – good growth opportunities and high sentiments in the equity market. Going forward, both can continue.”

IPOs of Indian Textile and Garment companies launched in 2024 (US $ million)

The buzz doesn’t stop here! Few more companies are also on the same route. Aiming to arrange US $ 29.64 million for its pre-IPO placement, designerwear retailer Pernia’s Pop-Up Shop (Purple Style Lab) will launch IPO for network expansion and debt retirement.