This also marks the highest fund-raising through IPOs in last three years.

Sandeep Bhardwaj, CEO, Retail at IIFL Securities said the IPO pipeline remains strong with 28 companies holding markets regulator Sebi''s approval for raising nearly Rs 28,710 crore through initial share-sale going forward.

Moreover, companies including LIC, HDB Financial Services, NCDEX, ESAF Small Finance Bank are expected to come out with their IPOs in 2021-22, said Rajendra Naik, Managing Director - Investment Banking, Centrum Capital.

According to an analysis of data available with the stock exchanges, 30 firms raised Rs 31,277 crore through initial public offerings (IPOs) in 2020-21, significantly higher than Rs 20,352 crore mopped up through 13 initial share-sales in the preceding fiscal year.

Prior to that, 14 companies had floated IPOs in 2018-19 to raise Rs 14,719 crore and 45 main-board IPOs during 2017-18 collectively raised Rs 82,109 crore.

Apart from IPOs, 2020-21 witnessed Rs 15,000-crore follow-on public offer of Yes Bank.

Adding depth to the IPO markets, companies from diverse sectors like jewellery, technology, specialty chemicals, banking and financial services have made their way to the IPO space during the period under review.

"The biggest factor driving companies to fund-raising through IPO is the bull run in the stock market. Improved sentiments in the secondary market acted as a support for the primary market," Naik said.

Acoording to him, ample liquidity, better than expected economic recovery uplifted the market sentiment and the same was visible in the primary market.

Making similar statement, IIFL Securities'' Bhardwaj said availability of ample liquidity in the system across the world, new sectors businesses with immense opportunities and optimism around the Indian demography, demand and growth story triggered the IPOs'' gold rush.

VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services believes there is exuberance in the market and this has attracted large number of retail investors into the market.

He, further, said new retail investors are actively and a bit irrationally applying for IPOs and suggested that such investors should be discrete in selecting IPOs.

Kaushlendra Singh Sengar, Founder and CEO at INVEST19 said that FD(Fixed deposit) interest rates are going down in every decade. This is also one of the factors wherein users are diverting their investment from FD to equities.

Primary capital raised through IPOs were used to shore up balance sheets to weather any incremental stress from economic activity going down and  private equity players utilised this opportunity to monetise their investments through an offer-for-sale (OFS), Ajay Saraf, Head - Investment Banking & Institutional Equities at  ICICI Securities, said.

The IPO chart in 2020-21 was led by Gland Pharma (about Rs 6,480 crore), Indian Railway Finance Corporation (Rs 4,633 crore),  CAMS (Rs 2,240 crore) and UTI Asset Management Company (Rs 2,160 crore).

In addition, Rossari Biotech, Kalyan Jewellers India, Barbeque Nation Hospitality, RailTel Corporation of India, Angel Broking, Home First Finance Company and Suryoday Small Finance Bank among others tapped the IPO route to raise funds.

"Post the initial blackout post COVID-19 incidence, Rossari Biotech paved the way for companies to IPO in the new digital format. Fuelled by global liquidity, all companies who were ready with the requisite regulatory approvals launched their IPOs," ICICI Securities'' Saraf said.

The issue of MTAR Technologies received best response with a subscription of a little over 200 times followed by Mrs Bectors Food Specialties at 198 times.

In addition, public issue of Burger King India, Nazara Technologies, Laxmi Organic Industries, Easy Trip Planners, Mazagon Dock Shipbuilders, Happiest Minds Technologies, Indigo Paints and Chemcon Specilalty Chemicals subscribed more than 100 times.

The success of the recent IPOs boosted the overall confidence in the primary market which is supported by improved liquidity and overall risk appetite, Neeraj Chadawar, head of quantitative equity research at Axis Securities, said.

Interestingly, the year 2020-21 saw most of the IPOs opening with a premium over the issue price suggesting strong investors appetite.

In fact, IPOs of Route Mobile, Happiest Minds Technologies, Rossari Biotech, Burger King India and Equitas Small Finance Bank clocked handsome gains of 84-314 per cent since listing, to investors.

"The listing performance of recent IPOs issue are likely to give impetus to the primary market and we believe the market will hot up the next financial year also," IIFL Securities'' Bhardwaj said.

ICICI Securities'' Saraf said the "next fiscal has a never before seen pipeline of potential IPOs looking to tap capital markets".

According to INVEST19's Singh, IPO market for next 2- 3 years will be on a great boom space because of favourable Union Budget with a decade growth view, market at all-time high, domestic, retail and foreign investment on peak.