The Indian corporate sector is primed to smash through previous records and tap into over Rs 1 trillion in new capital through initial public offerings (IPOs) in the fiscal year 2024-25 (FY25). Market participants note a strong pipeline of prospective issuers preparing to enter the public markets supported by the country’s robust economic growth rate of over 7%.
Data from investment advisors shows 56 companies have already filed papers with the securities regulator targeting aggregate raises of Rs 70,000 crore. While 19 of these have received clearance to mobilise approximately Rs 25,000 crore, an additional 37 applicants are awaiting approval for issuances totaling Rs 45,000 crore. Significantly, 9 of the prospective issuers come from new-age tech domains collectively aiming to tap Rs 21,000 crore in new funding.
In FY24, Indian corporations raised nearly Rs 62,000 crore through 76 mainboard listings, reflecting a 19% jump over the prior fiscal. Average first-day returns stood at 28% and over 70% of stocks still trade above issue price. Experts believe buoyant secondary markets, strong retail investor interest and continued flows from institutional allocators will support another stellar year for IPO activity.
Given India’s projected growth rate, industry insiders anticipate total capitalisation could exceed Rs 1 lakh crore if global markets remain stable. The resurgent private capital, job creation, reduced leakages and unprecedented infrastructure spending are primed to unlock opportunities of unprecedented scale. Favourable policies and rising financial inclusion will fuel demand while experienced intermediaries stand ready to back quality issuers with compelling narratives. All signs point to an exciting 12 months ahead for the IPO landscape as promising businesses fast track their public journeys.
