The IPO market in India has reached a historic milestone in 2024, doubling its proceeds from USD 5.5 billion in 2023 to USD 11.2 billion this year, according to a report by Global Data. Murthy Grandhi, Company Profiles Analyst at GlobalData, predicts that 2025 will see even bigger fireworks in India’s IPO market. Grandhi attributes this success to factors such as increased retail participation, domestic inflows, and strong performances by Foreign Portfolio Investors (FPIs) despite being net sellers in the secondary market. He also highlights the government’s focus on infrastructure development and private capital expenditure as key contributors to the market dynamism.
India’s IPO boom is more than just a numerical achievement, as it also signifies the evolution and resilience of the country’s financial ecosystem, establishing India as a global hub for capital fundraising. Notable IPOs in 2024 included Hyundai Motor’s USD 3.3 billion issue, Swiggy’s USD 1.3 billion offering, NTPC Green Energy’s USD 1.2 billion IPO, Vishal Mega Mart’s USD 0.9 billion listing, and Bajaj Housing Finance’s USD 0.8 billion issue. Other countries in the Asia-Pacific region also reported significant IPO activity, with Japan experiencing a 275.1 per cent growth and Malaysia recording a 145.9 per cent increase in IPO proceeds.
However, China saw a substantial decline in IPO numbers due to tightened regulations, with a 51.3 per cent drop in IPOs raising just over USD 5.2 billion. Overall, the APAC region saw 604 IPOs in 2024, raising a total of USD 33.9 billion which was a 21.5 per cent increase from the previous year. India stood out as the top performer in the region, with over 200 companies going public. The technology and communications sector led the IPO market in APAC, followed by the financial services sector.
Looking ahead, the IPO market globally is forecasted to surpass the activity seen in 2024, with a strong pipeline already in place. However, the trajectory of the market will be influenced by global factors such as decisions by the Federal Reserve and the performance of emerging markets. Overall, the report by Global Data paints a positive picture for the IPO market in India and the Asia-Pacific region, highlighting the strong growth and potential for further success in the coming years.
