As investors show confidence in investing, fundraising via IPOs in India hit another landmark in 2024 as economic growth, favourable market conditions and improvements in the regulatory framework helped companies raise a record Rs 1.6 lakh crore.
Th exceptional year for IPOs not only reflected the confidence of issuers but also highlighted investors’ eagerness to seize listing-day gains or back companies with strong long-term growth potential. The year also marked the country’s largest IPO in history in Hyundai Motor which raised Rs 27,870 crore.
Companies with large, mid, and small capitalisations tapped into the IPO route with an average issue size rising significantly from Rs 867 crore in 2023 to over Rs 1,700 crore in 2024. The exceptional vibrancy of the IPO market was evident, with December alone seeing at least 15 launches.
Momentum to further accelerate in 2025
With the advent of new year the fundraising momentum is expected to accelerate further, potentially surpassing 2024’s record figures, market analysts said. Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, said, “Based on the 75 IPO documents, which are at various stages of approval/ marketing and the deal pipelines, we expect issuance activity in 2025 to cross Rs 2.5 lakh crore.”.
Net year, the IPOs which was in pipeline, including 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.
Rapid rise in IPO fundraising
As per the data available with the exchanges, 90 maiden public issues were launched in 2024, collectively raising Rs 1.6 lakh crore. This includes eight IPOs which are scheduled to conclude on December 23-24. This year the IPO fundraising is significantly higher as in 2023, it was Rs 49,436 crore.
i(With inputs from agencies)