Gujarat, known for its thriving business culture, leads the nation in IPO (Initial Public Offer) investments, with even smaller cities outpacing major hubs like Hyderabad, Bangalore, and Delhi.

In 2021-22, Gujarat ranked second in total IPO application amounts, contributing ₹88,819 crore, while Maharashtra held the top spot with ₹8.69 lakh crore.

In 2022-23, Gujarat accounted for ₹21,960 crore in applications compared to Maharashtra’s ₹32,887 crore.

However, in 2023-24, Gujarat claimed the top position with ₹1.35 lakh crore, leaving Maharashtra in second place with ₹94,617 crore.

9 cities from Gujarat  among top 20 

Despite Mumbai being India’s financial capital and leading in terms of financial institutions and investors, Gujarat has overtaken Maharashtra in IPO investment volumes. Of the top 20 cities contributing to IPO investments, nine are from Gujarat.

These include smaller centres like Surendranagar, Gandhinagar, Mehsana, and Jamnagar. Notably, cities such as Bengaluru, Pune, Hyderabad, and Chennai rank below most cities in Gujarat on this list.

3 Out of 4 IPOs yield profits

Over the past three years, 166 public issues raised funds through IPO out of which, 120 companies offered listing prices higher than the issue prices, resulting in profits for investors.

Only 46 IPOs incurred losses. Experts suggest the 75% success rate has motivated investors to channel surplus funds from bank savings into IPO applications.

Attraction of higher returns than bank deposits

Post-COVID, the extraordinary growth in the stock market has led to increased investments in the secondary market through direct stock purchases or mutual funds.

At the same time, the primary market offers investors the opportunity for substantial profits during IPO listings. This has prompted many to invest surplus funds from bank deposits into IPOs to achieve higher returns.

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