IPO boom: Record Rs 1.6 lakh cr raised in 2024

New year to see greater heights

NEW DELHI: Fundraising via IPOs in India hit another landmark as economic growth, favourable market conditions and improvements in the regulatory framework helped companies raise a record Rs 1.6 lakh crore in 2024, while the pipeline for the next year holds out bigger promise.

This exceptional year 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 was marked by Hyundai Motor India's historic IPO, the largest in the country's history, which raised Rs 27,870 crore.

Companies of varying market capitalisations - large, mid, and small - tapped into the IPO route in 2024, with the 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.

"Rising retail participation, strong domestic inflows and active participation by FPIs (even though they have been net sellers in the secondary market), private capex increase and the government's strategic focus on infrastructure and key sectors have collectively laid a strong foundation for the fundraising momentum in India," V Prashant Rao, Director & Head - ECM, Investment Banking at Anand Rathi Advisors, said.

Fundraising momentum is expected to accelerate further in the New Year, potentially surpassing 2024's record figures, market analysts 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," Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, said.