Strong Macro Keeps IPO Pipeline Robust For 2025

Rising retail participation, strong domestic inflows and active participation by FPIs have collectively laid a strong foundation for the fundraising momentum in India - V Prashant Rao, Director & Head - ECM, Investment Banking, Anand Rathi Advisors

New Delhi: Fundraising via IPOs in India hit another landmark as economic growth, favourable market conditions and improvements in the regulatory framework helped companies raise a record Rs1.6 lakh crore in 2024, while the pipeline for the next year holds out bigger promise. This exceptional year not only reflected the confidence of issuers, but also highlighted investors’ eagerness to seize listing-day gains or back companies with strong long-term growth potential. The year was marked by Hyundai Motor India’s historic IPO, the largest in the country’s history, which raised Rs27,870 crore. Companies of varying market capitalisations -- large, mid, and small -- tapped into the IPO route in 2024, with the average issue size rising significantly from Rs867 crore in 2023 to over Rs1,700 crore in 2024.

The exceptional vibrancy of the IPO market was evident, with December alone seeing at least 15 launches.

“Rising retail participation, strong domestic inflows and active participation by FPIs (even though they have been net sellers in the secondary market), private capex increase and the government’s strategic focus on infrastructure and key sectors have collectively laid a strong foundation for the fundraising momentum in India,” V Prashant Rao, Director & Head - ECM, Investment Banking at Anand Rathi Advisors, said.

Fundraising momentum is expected to accelerate further in the New Year, potentially surpassing 2024’s record figures, market analysts said.

“Based on the 75 IPO documents, which are at various stages of approval/ marketing and the deal pipelines, we expect issuance activity in 2025 to cross Rs2.5 lakh crore,” Munish Aggarwal, Managing Director and Head of Equity Capital Markets at Equirus, said. The IPO pipeline for the next year is set to feature major offerings, including HDB Financial Services’ proposed Rs12,500 crore issue, LG Electronics India’s Rs15,000 crore public float, and Hexaware Technologies’ Rs 9,950 crore offering.

According to data available with the exchanges, 90 maiden public issues were launched in 2024, collectively raising Rs1.6 lakh crore. This includes eight IPOs scheduled to conclude on December 23-24. Besides, the Rs500-crore IPO of Unimech Aerospace and Manufacturing is slated to open on December 23. Additionally, Vodafone Idea raised Rs18,000 crore through a follow-on public offer (FPO). About Rs1.6 lakh crore raised in 2024 far exceeded Rs49,436 crore garnered by 57 firms through IPOs in 2023. By comparison, 2021 saw 63 companies raising Rs 1.2 lakh crore, marking the best IPO year in two decades, driven by abundant liquidity, increased retail investor participation, and sustained euphoria in the primary market.