Year-Ender 2024: Indian IPO Market Doubles This Year, Jumps To $11.2 Billion; 2025 To See Further Growth

India's initial public offering (IPO) market has achieved a milestone in 2024, doubling its total proceeds from $5.5 billion in 2023 to $11.2 billion, as per a report by Global Data. This growth highlights the nation's booming capital market, fueled by investor demand and a favourable economic environment.

2024: A Year of Blockbuster IPO Growth
Murthy Grandhi, a Company Profiles Analyst, described 2024 as a "bull run" for India's IPO market, attributing the surge in proceeds to a combination of factors. "The pipeline for 2025 promises even bigger fireworks, fueled by skyrocketing retail participation, hefty domestic inflows, and foreign portfolio investors (FPIs) flexing their muscles despite being net sellers in the secondary market," he said in an ANI report.

The growth in 2024 reflects a confluence of issuer confidence and investor enthusiasm. Investors have shown an "insatiable appetite" for both listing-day gains and long-term growth opportunities. The government's emphasis on infrastructure and core sector development, along with increased private capital expenditure, has contributed to the market's dynamism.

Grandhi further emphasized that this IPO boom is not merely a numerical feat. It underscores the evolution and resilience of India's financial ecosystem, reinforcing its position as a global hub for capital fundraising.

Key IPOs That Defined 2024
The year 2024 witnessed several blockbuster IPOs that solidified India's standing in the global IPO landscape. Among the most notable were Hyundai Motor's $3.3 billion IPO, which emerged as the largest in the Indian market, Swiggy's $1.3 billion offering, NTPC Green Energy's $1.2 billion IPO, Vishal Mega Mart's $0.9 billion listing, and Bajaj Housing Finance's $0.8 billion issue.

APAC IPO Market
India stood out as the top performer in the Asia-Pacific (APAC) region in 2024. With over 200 companies going public, the country led the region in both volume and value, as per Global Data's analysis. The APAC region as a whole recorded 604 IPOs, raising $33.9 billion - a 21.5% increase in proceeds compared to 2023.

Other APAC nations also witnessed significant IPO activity. Japan experienced a 275.1% growth in IPO proceeds, raising $12.6 billion from 69 listings. Malaysia recorded a 145.9% increase with $1.1 billion raised through 36 IPOs.

However, China faced a downturn due to tightened regulations, with its IPO numbers dropping by 51.3%. The country managed 64 IPOs, raising $5.2 billion. The technology and communications sector led the APAC IPO market with 118 transactions worth $3.8 billion. The financial services sector followed with 60 deals, raising $2.6 billion.

A Glimpse Into 2025
The momentum from 2024 is expected to carry forward into 2025, with an already strong IPO pipeline in place. Grandhi predicts that India's IPO market will continue to thrive, driven by retail investor participation, domestic inflows, and favourable economic policies.

On a global scale, the IPO market is projected to surpass 2024 levels, contingent on macroeconomic factors such as Federal Reserve rate decisions and the performance of emerging markets.

*Inputs from ANI*