2024 was a landmark year for IPOs when auto majors Hyundai Motors India, Bajaj Housing Finance, food delivery platform Swiggy, NTPC Green Energy, and electric scooter company OLA Electric came out with their offerings to mobilize capital. This increase in IPO activity underscored the rising investor sentiment and the demand for equity mobilization in the country. More particularly, IPOs, QIPs, and rights issues by India Inc. have seen equity mobilization go well past a spectacular Rs 3 lakh crore, marking a stupendous 64% hike over the previous high of Rs 1.88 lakh crore set in the preceding year.
This has been a compelling thrust for the equity capital market growth, built on strong market sentiment and corporate strategic expansions. Analysts, including investment bankers, presume that such zeal will continue until the year 2025, with additional organizations predicted to utilize public markets for their performance vectors.
“India Inc’s significant fundraising in 2024 can be attributed to a favorable macroeconomic environment, a robust equity market, and increased investor confidence driven by stable policies and growth,” Pinak Bhattacharya, Head of Corporate Finance at IIFL Capital, said. “Fresh issues highlight the need for capital to fund expansion, deleverage balance sheets, and invest in growth opportunities, in addition to the monetization of existing stakes.”
India’s IPO Boom
The zeal to raise equity funds was taken to a new level with DAM Capital, led by this week’s debut public issue by deal maker Dharmesh Mehta. Analysts have highlighted this as a sign of active market activity visible through 2024. As per Prime Database, as many as 90 companies have either raised or announced the raising of Rs 1.62 lakh crore this fiscal. This totals more than double the amount seen last year, Rs 49,436 crore, indicating an increase in fundraising endeavors.
These upward trends in IPOs and other equity instruments depict healthy investor sentiments and corporate ambitions within the financial markets in India. A record number of deals have been closed this year alone, and a considerable amount of capital has been attracted. In the following years, even more spectacular public offerings will occur.
Will India’s IPO Boom Continue In 2025?
The IPO activity in 2024 has been outstanding, making 2025 another potential year of great performance. Given the recent situation where companies unprecedentedly attract billions of dollars in funding and buyers’ enthusiasm remains high, analysts expect the continuation of the manic upswing through 2025.
Exciting Prospects For IPO In 2025
The IPO market in India is very active as LG plans to give its Indian unit a potential value of up to $15 billion for the IPO, which is expected to be launched early next year, as reported by Bloomberg. Further complementing the euphoria, Flipkart, India’s largest online marketplace with an estimated $36 billion, has also started preparing for an IPO plan that could easily emerge as one of the biggest offerings by a new economy enterprise. This expected shift will be a turning point for India’s startup scene, which is already the third largest in the world today.
Recently, Flipkart has reportedly received internal clearances to change its legal jurisdiction from Singapore to India to fully comply with all the relevant laws. The listing of the Walmart-owned firm is expected to help uphold confidence in India’s rapidly growing startup domain and encourage other unicorns to emulate similar moves.
On the other hand, 2025 could be a year of IPOs among many established listed firms floating their subsidiaries. Companies like HDFC Bank, Hero MotoCorp, Reliance Industries, Manappuram Finance, Muthoot Finance, Brigade Enterprises, Canara Bank, and Greaves Cotton are in the process of developing their IPO. This wave emphasizes the increased demand for equity investments and the changing maturity of the Indian capital markets.
The potential for IPOs, both from start-ups and established corporations is projected to make a riveting blend for the year 2025, which in turn is expected to provide a strong basis for developing the stock market and improving investor activity.
Is 2025 Set To Witness India’s Biggest IPO Yet?
In 2024, Hyundai Motor India became the latest entrant to set a new record in India’s primary market. It surpassed LIC in terms of the amount mobilized by it through its offering of Rs 27,870 crore as compared to LIC’s Rs 20,557 crore in 2022. The IPO wave is still on; depending on this, 2025 could witness an IPO that might surpass the record of Hyundai Motor India.
Mukesh Ambani, who recently became the world’s richest man, is supposedly eyeing to float his telecom venture Jio through an initial public offering in Mumbai next year. Bloomberg analysts have estimated that Reliance’s Jio will be worth over $100 billion, and thus, it could potentially become the largest IPO in India. On the other hand, the IPO of Reliance Retail’s unit is also expected to happen later, as reported by Reuters sources.
Given such exciting IPO prospects, 2025 could change the face of the Indian IPO market while consolidating India’s place as a financial powerhouse.
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