Indian IPO, FPO mkts hit record high

India remains a critical market for deploying private equity capital, accounting for at least 22% of Asia Pacific’s sum of equity invested during the H1 of 2024 compared to 19% market share from the H1 of last year, said Elaine Tan, senior manager, LSEG Deals Intelligence

Equity Capital Market

•  Fund raising via IPOs rose 97.8%
•  FPOs up 156% to $25.1 bn
•  FPOs accounted for 85% of overall ECM proceeds
•  Industry accounted for 21.4% share in ECM space

New Delhi: The India equity capital markets (ECM) hit a record high and raised $29.5 billion in the first half this year, up 144.9 per cent compared to a year ago, a report said, as follow-on public offers (FPOs) saw stupendous growth. Initial public offerings (IPO) from Indian companies raised $4.4 billion, up 97.8 per cent compared to the same period last year, and the number of IPOs jumped 70.6 per cent year-on-year, according to data shared by LSEG Deals Intelligence.

“Follow-on offerings, which accounted for 85 per cent of India’s overall ECM proceeds, raised $25.1 billion, up 155.7 per cent from a year ago, while the number of follow-on offerings grew 56.4 per cent year-on-year,” the report mentioned.

ECM issuance from India’s industrial sector accounted for the majority of the nation’s ECM activity with a 21.4 per cent market share worth $6.3 billion in proceeds, a 96.2 per cent increase from a year ago.

“Private equity investments in India saw a marked improvement in the second quarter of 2024, as the sum of equity invested amounted to $3.6 billion, a 75 per cent sequential increase from the first quarter of 2024,” said Elaine Tan, senior manager, LSEG Deals Intelligence.

India remains a critical market for deploying private equity capital, accounting for at least 22 per cent of Asia Pacific’s sum of equity invested during the first half of 2024 compared to 19 per cent market share from the first half of last year, Tan added.

Meanwhile, overall Indian mergers and acquisitions (M&A) activity during the first half of 2024 grew 4.4 per cent in deal value to $37.3 billion compared to the same period last year, according to Tan.

The majority of the deal-making activity involving India targeted the high technology sector, which totalled $5.8 billion, a 13.2 per cent increase in value from the comparative period last year and accounted for 15.6 per cent market share.