IPO growth: Document Rs 1.6 lakh crore raised in 2024; new 12 months to see better heights

NEW DELHI: Fundraising through IPOs in India hit one other landmark as financial progress, beneficial market circumstances and enhancements within the regulatory framework helped firms elevate a document Rs 1.6 lakh crore in 2024, whereas the pipeline for the subsequent 12 months holds out greater promise. This distinctive 12 months not solely mirrored the boldness of issuers but additionally highlighted traders’ eagerness to grab listing-day positive aspects or again firms with sturdy long-term progress potential.
The 12 months was marked by Hyundai Motor India’s historic IPO, the most important within the nation’s historical past, which raised Rs 27,870 crore.
Corporations of various market capitalisations — giant, mid, and small — tapped into the IPO route in 2024, with the common challenge measurement rising considerably from Rs 867 crore in 2023 to over Rs 1,700 crore in 2024.
The distinctive vibrancy of the IPO market was evident, with December alone seeing not less than 15 launches.
“Rising retail participation, sturdy home inflows and energetic participation by FPIs (although they’ve been internet sellers within the secondary market), non-public capex improve and the federal government’s strategic give attention to infrastructure and key sectors have collectively laid a powerful basis for the fundraising momentum in India,” V Prashant Rao, Director & Head – ECM, Funding Banking at Anand Rathi Advisors, stated.
Fundraising momentum is predicted to speed up additional within the New 12 months, doubtlessly surpassing 2024’s document figures, market analysts stated.
“Primarily based on the 75 IPO paperwork, that are at varied levels of approval/ advertising and the deal pipelines, we count on issuance exercise in 2025 to cross Rs 2.5 lakh crore,” Munish Aggarwal, Managing Director and Head of Fairness Capital Markets at Equirus, stated.
The IPO pipeline for the subsequent 12 months is about to function main choices, together with HDB Monetary Companies’ proposed Rs 12,500 crore challenge, LG Electronics India’s Rs 15,000 crore public float, and Hexaware Applied sciences’ Rs 9,950 crore providing.
In accordance with information obtainable with the exchanges, 90 maiden public points had been launched in 2024, collectively elevating Rs 1.6 lakh crore. This consists of eight IPOs scheduled to conclude on December 23-24. In addition to, the Rs 500-crore IPO of Unimech Aerospace and Manufacturing is slated to open on December 23.
Moreover, Vodafone Thought raised Rs 18,000 crore by way of a follow-on public provide (FPO). About Rs 1.6 lakh crore raised in 2024 far exceeded Rs 49,436 crore garnered by 57 companies by way of IPOs in 2023.
By comparability, 2021 noticed 63 firms elevating Rs 1.2 lakh crore, marking one of the best IPO 12 months in twenty years, pushed by plentiful liquidity, elevated retail investor participation, and sustained euphoria within the main market.
The resurgence in exercise additionally prolonged to the SME section, the place a document 238 small and medium enterprises raised Rs 8,700 crore, practically doubling the Rs 4,686 crore raised in 2023, in keeping with the information supplied by primedatabase.com.
This progress displays growing curiosity in SME public choices, though it comes with heightened dangers for retail traders.
In response, Sebi determined to introduce stricter regulatory frameworks, together with profitability necessities, a cap on the offer-for-sale (OFS) part and a “draw of tons” system for non-institutional traders (NIIs) to safeguard smaller traders.
Consultants attributed this 12 months’s strong IPO exercise to a secure financial atmosphere, coverage continuity on the central authorities stage, and broad-based financial progress.
“Steady financial atmosphere, coverage continuity on the central authorities stage mixed with broad-based progress have inspired firms and traders to lift funds. International portfolio traders have additionally been massive patrons, particularly within the bigger IPOs,” stated Pranjal Srivastava, Associate-Funding Banking at Centrum Capital.
A number of components, together with non-public fairness exits, sponsor-driven gross sales, and shifts in company funding methods, have additionally pushed the IPO exercise.
“The resurgence of producing and elevated non-public capital expenditure are key contributors as firms look to fund growth and modernisation. Many companies are additionally specializing in diversifying their funding sources by shifting from debt-heavy fashions to fairness, making certain stronger stability sheets and diminished leverage,” stated Neha Agrawal, MD & Head, Fairness Capital Markets at JM Monetary Institutional Securities.
Among the many 12 months’s largest main-board IPOs, Hyundai Motor India led the pack, elevating Rs 27,870 crore, adopted by Swiggy (Rs 11,327 crore), NTPC Inexperienced Vitality (Rs 10,000 crore), Bajaj Housing Finance (Rs 6,560 crore), and Ola Electrical Mobility (Rs 6,145 crore).
In distinction, Vibhor Metal Tubes launched the smallest IPO, elevating simply Rs 72 crore, indicating the range of firms accessing the capital markets.
For firms, going public gives essential funds for growth, working capital, and debt compensation whereas enhancing visibility and attracting new enterprise alternatives. IPOs additionally function an exit technique for long-term traders.
Apparently, the IPO subscription ratios have been exceptionally excessive this 12 months. Vibhor Metal Tubes noticed a powerful subscription of 320 occasions, whereas different choices like KRN Warmth Exchanger and Refrigeration, Manba Finance, and Gala Precision Engineering had been every subscribed over 200 occasions.
Moreover, IPOs of firms like One Mobikwik Techniques, Unicommerce eSolutions, Diffusion Engineers, BLS E-Companies, and Exicom Tele-Techniques had been subscribed greater than 100 occasions.
This sturdy demand translated into substantial itemizing positive aspects, with over 60 firms delivering constructive returns on their debut day.
Vibhor Metal Tubes, BLS E-Companies, Bajaj Housing Finance and KRN Warmth Exchanger delivered greater than 100 per cent acquire, reflecting strong investor demand.
In the meantime, India’s fairness markets additionally noticed record-breaking performances, with the NSE Nifty 50 reaching an all-time excessive of 26,216 factors on September 27 and the BSE Sensex peaking at 85,836 factors on September 26, supported by the nation’s strong financial progress outlook.