Synopsis
A recent report highlights that Indian corporations raised unprecedented funds through equity and debt in FY25, with significant contributions from IPOs and strong interest from retail investors.Key Takeaways
- Public equity fundraising surged by 92% to Rs 3.71 lakh crore.
- Debt fundraising reached Rs 11.12 lakh crore, primarily through private placements.
- 78 companies raised Rs 1.62 lakh crore via IPOs, setting a new record.
- New-age tech firms raised Rs 21,438 crore, showing significant growth.
- Retail interest in IPOs increased significantly, with applications rising to 21.33 lakh.
Mumbai, March 27 (NationPress) Indian corporations have achieved a remarkable fundraising feat through equity and debt in the financial year 2024-25, despite experiencing market fluctuations, as highlighted in a recent report.
According to data from PRIME Database, public equity fundraising skyrocketed by 92 percent to Rs 3.71 lakh crore.
Including rights issues, the total amount raised approached Rs 3.88 lakh crore. Debt fundraising also reached new heights, totaling Rs 11.12 lakh crore, primarily through private placements.
The IPO market exhibited strength, with 78 companies securing Rs 1.62 lakh crore through mainboard IPOs, marking the highest annual fundraising on record.
This figure is over 2.5 times the Rs 61,922 crore raised in the prior year. Leading the charge was Hyundai Motor India Limited with a substantial IPO of Rs 27,859 crore, followed closely by Swiggy at Rs 11,327 crore, and NTPC Green Energy at Rs 10,000 crore.
The IPO pipeline remains robust, with 49 companies already receiving SEBI approval to raise Rs 84,000 crore, while an additional 67 companies await clearance for Rs 1.02 lakh crore.
New-age technology firms made a strong resurgence, collectively raising Rs 21,438 crore from eight companies, a significant increase from Rs 3,040 crore in 2022-23 and Rs 5,544 crore in 2021-22.
Investor enthusiasm soared, with 56 IPOs witnessing subscriptions exceeding 10 times, and 33 of them surpassing 50 times.
Interest from retail investors surged, with the average number of applications climbing to 21.33 lakh in 2024-25, compared to 13.15 lakh the previous year.
IPO listings yielded impressive returns, with the average listing gain rising to 30 percent from 29 percent in the preceding year.
Almost 46 IPOs continue to trade above their issue price, providing an average return of 15 percent despite market corrections in the latter half of the year.
Foreign portfolio investors significantly contributed to IPO allocations, accounting for 16 percent through anchor investments, while mutual funds made up 13 percent.
In total, Qualified Institutional Buyers (QIBs) captured 67 percent of the overall public issue amount.
The SME IPO sector also experienced robust growth, with 235 small and medium enterprises raising Rs 9,133 crore, reflecting a 53 percent increase from the previous year.
Retail investors exhibited significant interest in SME IPOs, with average oversubscription reaching 233 times.
Offer-for-sale (OFS) transactions rose by 29 percent to Rs 30,741 crore, with government divestments contributing Rs 4,359 crore.
Qualified Institutional Placements (QIPs) more than doubled, with 91 companies raising Rs 1.43 lakh crore.
Debt fundraising remained robust, with Rs 8,044 crore raised through public bonds; however, the majority of debt issuances were conducted through private placements.
