India's IPO Momentum

AN IPO ALLOWS TO RAISE CAPITAL WHILE ALLOWING PROMOTERS, EARLY INVESTORS, AND EMPLOYEES TO REALIZE THE VALUE OF THEIR INVESTMENTS.

- ANAND RATHI

In recent years, India has emerged as a thriving hub for initial public offerings (IPOs). Since 2021, the Indian primary markets have seen around 200 mainboard IPOs. In 2021, there were 63 IPOs worth around 1,20,000 crores, setting a new record. In 2022, 40 IPOs raised approximately 60,000 crores. In 2023, 58 IPOs raised around INR 44,000 crores. As of mid-July 2024, over 35 IPOs have raised over INR 30,000 crore. Between CY21 and CY24, 466 IPOs in the SME segment raised INR 11,556 crores, highlighting their importance of the MSME sector.

CAUSE OF THE IPO BOOM

There is a strong positive correlation between secondary equity market performance and primary equity capital raises. At the same time, macroeconomic and corporate fundamentals drive secondary market performance.

GOVERNMENTAL INITIATIVES AND REGULATORY SUPPORT