Record-breaking surge

India’s growth story continues to attract global attention and investments, supported by a stable government at the centre that continues to roll out consistent economic reforms, rapid infrastructure development, and a progressive policy outlook.

In its recently published news report, Bloomberg ranked India as one of the top fresh fundraising venues through IPOs globally. India overtook China, ranking No 2, after the US. While the capital markets of Hong Kong, Japan, and the UAE are among the top five, the UK slipped to No 20. During the calendar year 2024 (through 30 November), Indian capital markets served as a gateway to raise a whopping $19.50 billion through IPOs.

Consistent improvement in corporate earnings is fuelling the unstoppable run of India’s IPO market. “Political stability, India’s macroeconomic growth, and increasing domestic capital are three key factors contributing to the growth. We expect the IPO run in Indian capital markets to continue in 2025 as well,” said Abhinav Bharti of JP Morgan in an interview with CNBC International.

India’s largest stock exchange, the NSE, is seen to be driving from the front in facilitating global and Indian companies to enter public markets. The exchange witnessed the listing of 90 IPOs on its main board and 178 on its SME platform, NSE Emerge, raising a total of Rs1.67 lakh crore. Hyundai Motors’ Rs27,859 crore was notably the largest public issue, followed by Bajaj Housing and Swiggy.

Sriram Krishnan, Chief Business Development Officer (CBDO) at the NSE, states: “The record number of IPOs during this calendar year highlights the resilience and potential of the Indian economy. Companies across various sectors are recognising the value of public markets to support their growth strategies.” 

“NSE has alone done more IPOs than other top exchanges in Asia, including the IPOs of Japan Exchange Group, Hong Kong Stock Exchange, and Shanghai Stock Exchange combined,” he adds.

Best in Asia 

“Partners Group had an excellent experience during the listing of Vishal Mega Mart on the NSE and BSE. The streamlined processes in India are among the best in Asia and as efficient and seamless as any of the major global exchanges. We remain highly optimistic about the India growth story and the depth of our capital markets,” says Manas Tandon, partner at Partners Group. 

“Multinational corporations have demonstrated the strategic advantages of listing in India. Factors such as reduced capital costs, a wide consumer market, and a robust regulatory regime encourage global players to consider Indian markets for their equity offerings. The increasing participation of multinational corporations on Indian exchanges adds a new dimension to the Indian capital market,” states Mahavir Lunawat, Managing Director of Pantomath Capital.

Financial services firm Pantomath Group’s research report, released in December, noted that a record 143 DRHPs were filed with SEBI in 2024, compared to 84 in 2023 and 89 in 2022. These IPO draft filings come on the back of strong market performance, indicating that strong fundraising will continue through IPOs in the upcoming year. For 2025, 34 companies have already received the requisite SEBI approval for IPOs, targeting a combined Rs41,462 crore. Additionally, 55 firms await regulatory clearance, intending to raise about Rs98,672 crore. This record-breaking surge in IPO draft filings comes on the back of strong market performance, indicating that strong fundraising will continue through IPOs in the upcoming year.

Despite ongoing short-term challenges such as geopolitical tensions, weak corporate earnings, a slowing economy, and persistent foreign outflows in secondary markets, the long-term outlook for the Indian market remains strong. While lower-quality IPOs may struggle, well-established companies with solid profitability and clear business prospects are likely to attract strong investor interest, the report said.

“With the continued momentum in the markets, we now project that equity raised through IPOs will cross Rs2 lakh crore in 2025. This milestone is a testament to the resilience of India’s capital markets, the confidence of investors, and the critical role IPOs play in fuelling economic growth,” adds Lunawat.

While 2024 broke all records in terms of IPOs, 2025 is also set to witness the listing of players across sectors such as LG Electronics India, Hero Fincorp, HDFC Credila, Flipkart, Indira IVF, and Zepto. Companies like JSW Cement, Hexaware Technologies, Ather Energy, and NSDL are also expected to be listed on public bourses in 2025.