It is not just the secondary market that is witnessing a revival in fortunes. Even the IPO market has roared back to life, with investors submitting bids worth over Rs 2.2 trillion for the three IPOs that concluded on Friday.

Fashion retailer Vishal Mega Mart’s IPO—the fifth largest of the year—garnered 27.3x subscription, with bids exceeding Rs 1.6 trillion. Meanwhile, digital payments major One Mobikwik Systems’ IPO was subscribed nearly 120 times, attracting bids worth Rs 39,542 crore. The pharma firm Sai Life Sciences’ IPO was subscribed 10 times, with bids totalling Rs 22,000 crore.

The three IPOs—which together raised over Rs 11,600 crore—broke the spell of poor subscriptions and are also expected to end the trend of weak listings.

The 10 per cent drop in the Nifty 50 index from its record highs in September did not significantly impact IPO issuance. However, most IPOs that hit the market between October and November received a lukewarm response and suffered poor post-listing performance. For instance, the IPOs of Hyundai Motor India, Swiggy, Afcons Infrastructure, Acme Solar, NTPC Green Energy, and Niva Bupa Health were all subscribed less than 4 times.

Experts said the strong response to the latest offerings could encourage companies waiting on the sidelines to enter the market. The improvement in sentiment follows a sharp rebound in the market from its November lows. The benchmark Nifty 50 index has rallied 6 per cent from its lows last month, while the Nifty Midcap 100 and the Nifty Smallcap 100 have gained 8.5 per cent and 10.3 per cent, respectively. The gains have been supported by a revival in flows from foreign portfolio investors.

Vishal Mega Mart’s Rs 8,000-crore IPO was entirely an offer for sale by promoter Samayat Services, which currently holds a 96.55 per cent stake. VMM sells a wide range of products across apparel, general merchandise, fashion, home furnishings, and kitchen appliances. The company targets middle- and lower-middle-income groups through a network of over 640 stores. At the upper end of its price band of Rs 78, the company is valued at Rs 35,168 crore, 76x its FY24 net profit of Rs 462 crore.