The year 2024 has marked a significant milestone for India’s Initial Public Offering (IPO) market, achieving a record income of $11.2 billion (approximately ₹1.6 lakh crore). This figure is more than double the $5.5 billion raised in 2023, showcasing the resilience and growth of the Indian economy on a global scale.
Key Highlights of 2024
- Record Earnings: The IPO market’s success in 2024 reflects the strengthening of India’s financial ecosystem and growing investor confidence.
- Major IPOs: Notable IPOs this year included:
- Hyundai Motor: $3.3 billion
- Swiggy: $1.3 billion
- NTPC Green Energy: $1.2 billion
- Vishal Mega Mart: $0.9 billion
- Bajaj Housing Finance: $0.8 billion
These IPOs not only provided substantial returns to investors but also contributed to maintaining market momentum.
Factors Behind the Surge
Several factors contributed to this remarkable growth in the IPO market:
- Government Initiatives: Increased focus on infrastructure and core sector development by the government.
- Rising Capital Expenditure: A surge in capital expenditure by the private sector.
- Investor Participation: Enhanced participation from retail investors and foreign portfolio investors (FPIs).
- Positive Listing Day Returns: Improved returns on listing day have encouraged more investors to participate.
Performance Compared to Other Regions
India’s performance in the Asia-Pacific region has been noteworthy, with over 200 companies going public. The region collectively raised $33.9 billion through 604 IPOs, with India contributing significantly to this total.
- Japan recorded a remarkable growth of 275%, raising $12.6 billion.
- In contrast, China faced a decline of 51%, raising only $5.2 billion through 64 IPOs.
Reason of IPO Sucess in India
India’s IPO market has experienced remarkable success in 2024, achieving record-breaking figures and setting the stage for continued growth in 2025. Here are the key reasons behind this success:
1. Economic Growth
India’s robust economic growth has created a favorable environment for businesses to expand and tap into public markets. The increasing GDP and a stable economic outlook have boosted investor confidence, making IPOs an attractive option for companies looking to raise funds.
2. Increased Retail Participation
There has been a significant surge in retail investor participation in the IPO market. With more individuals investing in stocks, companies have seen greater demand for their shares during initial offerings, leading to successful launches and higher capital raised.
3. Positive Market Sentiment
The overall positive sentiment in the financial markets has encouraged companies to go public. Investors are eager to seize listing-day gains and back companies with strong growth potential, driving up demand for IPOs.
4. Government Support and Policy Reforms
Government initiatives aimed at infrastructure development and core sector growth have played a crucial role in enhancing market dynamism. Additionally, reforms by the Securities and Exchange Board of India (SEBI) have simplified the listing process, making it easier for companies to enter the market.
5. Diverse Range of Companies Going Public
The year saw a wide variety of companies from different sectors launching IPOs, from large corporations like Hyundai Motor to smaller firms. This diversity has attracted various types of investors, further boosting the market.
6. Larger Issue Sizes
The average size of IPOs has increased significantly, rising from approximately ₹867 crore in 2023 to over ₹1,700 crore in 2024. This reflects greater issuer confidence and the ability of companies to attract larger investments.
7. Digital Transformation
Many companies going public are leveraging digital technologies, making them appealing to investors looking for future-ready businesses. This trend aligns with global shifts towards digitalization and innovation.
8. Strong Performance of Notable IPOs
The success of high-profile IPOs such as Hyundai Motor ($3.3 billion), Swiggy ($1.3 billion), and NTPC Green Energy ($1.2 billion) has further fueled interest in the IPO market, showcasing the potential for substantial returns.
Outlook for 2025
Analysts are optimistic about the IPO market in 2025, predicting even stronger performance driven by:
- Increased retail investor activity.
- A robust pipeline of upcoming IPOs.
- Continued domestic capital inflow.
Currently, there are approximately 75 IPOs at various stages of approval, with expectations that companies could raise up to ₹2.5 lakh crore through IPOs next year.
Conclusion
The success of India’s IPO market in 2024 is not just a financial achievement but also a testament to the country’s economic strength and global recognition. As we move into 2025, expectations are high for continued growth and opportunities in this vibrant market.
Disclaimer: The information presented is based on recent developments in the Indian IPO market and may change as new data becomes available. Stay tuned for further updates regarding upcoming IPOs and market trends.
