Fundraising through IPOs in India reached a new milestone as economic growth, favorable market conditions and improvements in the regulatory framework helped companies raise a record Rs 1.6 lakh crore in 2024, while the pipeline for the next year holds greater promise .
This exceptional year not only reflected the confidence of issuers, but also highlighted investors’ eagerness to capture gains on the listing days or back companies with strong long-term growth potential.
The year was marked by Hyundai Motor India’s historic IPO, the largest in the country’s history, which raised Rs 27,870 crore.
Companies across market capitalizations – large, mid and small – took to the IPO route in 2024, with the average issue size increasing significantly from Rs 867 crore in 2023 to over Rs 1,700 crore in 2024.
The exceptional vibrancy of the IPO market was clearly visible; at least fifteen launches took place in December alone.
“The rising retail participation, strong domestic inflows and active participation of FPIs (even though they are net sellers in the secondary market), increase in private capital investment and the government’s strategic focus on infrastructure and key sectors have collectively strong foundation for fundraising momentum. in India,” said V Prashant Rao, Director and Head of ECM, Investment Banking at Anand Rathi Advisors.
Fundraising momentum is expected to accelerate further in the new year and possibly surpass 2024’s record figures, market analysts said.
“Based on the 75 IPO papers, which are at various stages of approval/marketing and deal pipelines, we expect issuance activity to cross Rs 2.5 lakh crore by 2025,” said Munish Aggarwal, Managing Director and head of Equity Capital Markets at Equirus. said.
The IPO pipeline for the coming year is expected to include major offerings, including HDB Financial Services’ proposed Rs 12,500-crore issue, LG Electronics India’s Rs 15,000-crore public offering and Hexaware Technologies’ Rs 9,950-crore offering.
According to data available with the exchanges, 90 initial public issues were launched in 2024, collectively raising Rs 1.6 lakh crore. This includes eight IPOs expected to close on December 23 and 24. Moreover, Unimech Aerospace and Manufacturing’s IPO worth Rs 500 crore is scheduled to take place on December 23.
