In 2024, fundraising through Initial Public Offerings (IPOs) in India hit a record high of Rs 1.6 lakh crore. This milestone was fueled by robust economic growth, favorable market conditions, and enhancements in the regulatory framework.
The year saw diverse companies, ranging from large to small market capitalizations, tapping into the IPO route, with the average issue size increasing from Rs 867 crore in 2023 to over Rs 1,700 crore. Highlighting the success of the year was Hyundai Motor India’s landmark Rs 27,870 crore IPO, the largest in the country’s history. With the IPO pipeline for 2025 looking even more promising, the market’s vibrancy is expected to continue well into the new year.
The average IPO size surged from Rs 867 crore in 2023 to over Rs 1,700 crore in 2024, reflecting increased issuer confidence and investor interest. December alone witnessed 15 IPO launches, showcasing the continued vibrancy of the market.
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Among the year’s largest main-board IPOs, Hyundai Motor India led the pack, raising Rs 27,870 crore, followed by Swiggy (Rs 11,327 crore), NTPC Green Energy (Rs 10,000 crore), Bajaj Housing Finance (Rs 6,560 crore), and Ola Electric Mobility (Rs 6,145 crore).
In contrast, Vibhor Steel Tubes launched the smallest IPO, raising just Rs 72 crore, indicating the diversity of companies accessing the capital markets.
“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.
Analysts predict that the momentum will carry into 2025, with IPO activity potentially surpassing Rs 2.5 lakh crore. Major upcoming offerings include HDB Financial Services’ Rs 12,500 crore issue and LG Electronics India’s Rs 15,000 crore IPO. The pipeline also features Hexaware Technologies’ Rs 9,950 crore offering.
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Foreign institutional investors (FIIs) remained active despite market fluctuations, contributing to the success of large IPOs.
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