IPOs To Raise Rs 2 Trillion In 2025: Report
Report shares that 34 companies have Securities and Exchange Board of India (Sebi) approvals to raise Rs 41,462 crore in 2025
The global IPO market has recorded 1,215 deals raising USD 121.2 billion, slightly below 2023 levels. However, the second half of 2024 witnessed improved performance, with the US reclaiming the top spot for IPO proceeds, according to a report by Pantomath Capital.
The report highlighted that India emerged as the leader in IPO volume, hosting twice as many IPOs as the US and 2.5 times more than Europe. A total of 76 companies raised Rs 1.3 trillion in the first eleven months of 2024 due to favourable regulatory reforms and investor confidence-fuelled market momentum, even during downturns.
For the primary market outlook for 2025, the report shared that 34 companies have Securities and Exchange Board of India (Sebi) approvals to raise Rs 41,462 crore. Whereas 55 firms await clearance for Rs 98,672 crore, with 143 DRHPs filed in 2024, compared to 84 in 2023 and 89 in 2022.
The report also predicted a record-breaking IPO fundraising in 2025, exceeding Rs 2 lakh crore. The figure stood at around Rs 1.8 trillion in the current year (CY) 2024.
Qualified institutions placements (QIPs) surged in 2024, with capital raised through 91 QIPs reaching a record high of Rs 1,29,200 crore (2.5 times that of 2023) so far this year. This figure surpassed the previous year's total of Rs 52,300 crore and marks the highest amount to date, exceeding the previous peak of Rs 80,500 crore in 2020.
The year was dominated by the real estate, utilities, automobiles, metals, and PSU banks sectors, which collectively accounted for 57 per cent of the total QIP issuances thus far.
Of the 91 issues, six have delivered returns exceeding 100 per cent of their issue prices. More than two-thirds of the stocks delivered positive returns against their issue prices.
“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. Increasing participation of multinational corporations on Indian Exchanges adds a new dimension to the Indian capital market,” said Mahavir Lunawat, Managing Director, Pantomath Capital.
The report also highlighted the key economic surge of 2024 and stated India’s equity markets soared to record highs with a market capitalisation of USD 5.29 trillion and established itself as the fourth largest market cap.
Benchmark indices Nifty and Sensex hit all-time highs of 26,277.35 and 85,978.25, respectively, in 2024.
“There are many opportunities available for both domestic and global investors, such as AIF, PMS, mutual funds, etc., for medium-term investment perspectives, to participate in India's long-term growth story. The investor’s preference towards equity as an investment avenue based on their risk appetite is constantly increasing in the last couple of years as compared to earlier. Such kind of Sustainable fund flow from different investors is a positive sign, and this liquidity will help the market to support any kind of correction or decline,” said Madhu Lunawat, CIO & Fund Manager, Bharat Value Fund.
