India’s initial public offering (IPO) market is on track for another milestone year, with companies raising unprecedented funds in 2024, driven by economic growth, favorable market conditions, and regulatory advancements.
As of December 3, a total of 298 companies debuted on the National Stock Exchange (NSE) and BSE, collectively raising Rs 1.406 trillion, according to S&P Global Market Intelligence. This marks a 22.6% increase in IPOs compared to 243 listings in 2023 and a 139vper cent surge in funds raised from Rs 588.27 billion last year.
“It is imminent that 2025 shall be a record year for IPOs in India,” said Sandeep Upadhyay, Managing Director and CEO of Centrum Infrastructure Advisory. He estimated an IPO pipeline exceeding $20 billion (Rs 2.176 trillion) over the next 12 to 18 months.
The previous record was set in the financial year ending March 31, 2022, when Rs 1.304 trillion was raised through equity sales, according to PRIME Database Group.
India's robust economic outlook has also supported market gains, with S&P Global Ratings forecasting a GDP growth of 6.8% for the fiscal year ending March 31, 2025. However, growth dipped to 5.4% in the July-September quarter, raising concerns about meeting the central bank’s full-year projection of 7.2%.
Market sentiment has been buoyed by the NIFTY 50 and BSE Sensex hitting all-time highs in September. Prashant Singhal, Partner at EY India, attributed this to the "financialization of domestic savings" as retail investors increasingly turn to capital markets. Demat accounts surged to 171 million as of August 2024, up from 41 million in March 2020, according to SBI Securities.
Despite recent foreign institutional investor (FII) outflows, experts predict a reversal. “FIIs are expected to begin reallocating incremental investments into Indian equities from early 2025,” Upadhyay added, citing attractive valuations and anticipated corporate earnings growth.
