Record Fundraising via IPOs in India: A Landmark Year for 2024
In a remarkable display of economic resilience and investor confidence, India’s fundraising via Initial Public Offerings (IPOs) reached an unprecedented milestone in 2024, with companies raising a staggering Rs 1.6 lakh crore. This achievement is a testament to the favorable market conditions, robust economic growth, and significant improvements in the regulatory framework that have collectively fostered a thriving environment for public offerings.
A Year of Unprecedented Growth
The year 2024 has been nothing short of historic for the Indian IPO market. The record amount raised not only reflects the confidence of issuers but also underscores the eagerness of investors to capitalize on listing-day gains and support companies with strong long-term growth potential. This exceptional year was highlighted by Hyundai Motor India’s IPO, which stands as the largest in the country’s history, raising an impressive Rs 27,870 crore. This landmark event set the tone for a vibrant IPO landscape, encouraging other companies to follow suit.
Diverse Participation Across Market Capitalizations
The IPO market in 2024 was characterized by a diverse range of companies from various market capitalizations—large, mid, and small caps—seizing the opportunity to tap into public funding. The average issue size saw a significant increase, rising from Rs 867 crore in 2023 to over Rs 1,700 crore in 2024. This upward trend indicates not only a growing appetite for capital among companies but also a shift in investor sentiment towards larger, more ambitious offerings.
December: A Month of Activity
The vibrancy of the IPO market was particularly evident in December, which alone witnessed at least 15 launches. This surge in activity reflects a strategic push by companies to capitalize on favorable market conditions before the year-end. Among these was the Rs 500-crore IPO of Unimech Aerospace and Manufacturing, slated to open on December 23, further contributing to the year’s impressive fundraising totals.
Factors Driving IPO Success
Several key factors have contributed to the robust fundraising momentum in India. V Prashant Rao, Director & Head – ECM, Investment Banking at Anand Rathi Advisors, noted that rising retail participation, strong domestic inflows, and active involvement by Foreign Portfolio Investors (FPIs)—despite their net selling in the secondary market—have collectively laid a strong foundation for this growth. Additionally, the increase in private capital expenditure and the government’s strategic focus on infrastructure and key sectors have created a conducive environment for companies to pursue public offerings.
Promising Outlook for 2025
Looking ahead, market analysts are optimistic that the momentum will not only continue but accelerate in the New Year. Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, anticipates that issuance activity in 2025 could surpass the record figures of 2024, potentially crossing Rs 2.5 lakh crore. This projection is supported by a robust pipeline of 75 IPO documents currently at various stages of approval and marketing.
Major Upcoming Offerings
The IPO pipeline for 2025 is set to feature several major offerings that are expected to attract significant investor interest. Notable among these are HDB Financial Services’ proposed Rs 12,500 crore issue, LG Electronics India’s Rs 15,000 crore public float, and Hexaware Technologies’ Rs 9,950 crore offering. These upcoming IPOs are poised to further energize the market and provide investors with a plethora of opportunities.
Conclusion
The year 2024 has marked a significant chapter in India’s IPO history, characterized by record fundraising, diverse participation, and a promising outlook for the future. As companies continue to leverage the favorable market conditions and investor enthusiasm, the Indian IPO landscape is set to flourish, paving the way for sustained economic growth and innovation. With a robust pipeline of upcoming offerings, the stage is set for another landmark year in 2025, as investors and issuers alike look forward to the opportunities that lie ahead.