India Set to Achieve Unprecedented IPO Fundraising of Over Rs 2 Lakh Crore in 2025
Click to start listening
Mumbai, Dec 26 (NationPress) India is on a path to become the world’s third-largest economy by 2027, aiming for a $7 trillion GDP by 2030, according to a report released on Thursday. This report anticipates that IPO fundraising in the nation will set new records next year, surpassing Rs 2 lakh crore.
The analysis by Pantomath Group, a prominent financial services firm, highlights that India has hosted double the number of IPOs compared to the US and 2.5 times more than Europe in 2023, establishing itself as a global leader in IPO volume.
“With the sustained momentum in the markets, we predict that the equity raised through IPOs will exceed Rs 2 lakh crore in 2025. This milestone underscores the resilience of India’s capital markets, the confidence of investors, and the vital role that IPOs play in driving economic growth,” stated Mahavir Lunawat, Managing Director of Pantomath Capital.
The report delineated remarkable economic expansion, sectoral advancements, and dominance in the IPO market, positioning India as a formidable global economic force.
Within the country, 76 firms raised Rs 1.3 trillion in the initial 11 months of 2024, as favorable regulatory reforms and investor confidence propelled market activity, even amid economic challenges.
Qualified Institutional Placements (QIPs) in 2024 have surged, with 91 transactions raising a historic Rs 1,29,200 crore, eclipsing last year's Rs 52,300 crore and the previous record of Rs 80,500 crore in 2020, marking an unparalleled peak.
“Multinational corporations have showcased the strategic benefits of listing in India. Elements such as lower capital costs, a vast consumer market, and a strong regulatory framework encourage global entities to explore Indian markets for their equity offerings,” Lunawat emphasized.
The year witnessed a significant presence of the real estate, utilities, automobiles, metals, and PSU bank sectors, which together constituted 57 percent of total QIP issuances to date. Of the 91 deals, six have yielded returns exceeding 100 percent over their issue prices. More than two-thirds of the stocks have recorded positive returns against their issue prices, according to the analysis.
