IPO fundraising hits ₹11T in first 9 months of FY24
What's the story
The Economic Survey has revealed that total resource mobilization from primary markets (equity and debt) during the nine months of the current fiscal year (April-December 2024) stood at a whopping ₹11.1 trillion. This is a 5% increase over the total amount raised via IPOs in FY24 and accounts for 25.6% of gross fixed capital formation of private and public corporations in FY24.
Global impact
India leads global IPO listings in 2024
In 2024, India's contribution to global IPO listings skyrocketed to 30%, compared to 17% the previous year. This remarkable growth made India the top contributor of primary resource mobilization globally. The Economic Survey also noted a massive increase in the number of IPOs between April to December 2024, with 259 companies going public, registering a growth rate of over 32%.
Fundraising growth
IPO fundraising nearly triples in 2024
The amount raised via IPOs almost tripled from ₹53,023 crore to ₹1.53 trillion in the same period. The mainboard platform witnessed a major jump in issue size with the average IPO deal size increasing to ₹2,124 crore, from ₹814 crore in FY24. For small and medium enterprises (SMEs) going for IPOs, the average deal size also increased to ₹39 crore from ₹31 crore during the period.
Market forecast
Analysts predict another strong year for primary markets
Analysts expect another strong year for the primary markets in 2025. Mumbai-based investment banking company Pantomath Capital Advisors has predicted that fundraising through this route could exceed the ₹2 trillion mark. "Currently, 100 companies have filed draft offer letters with SEBI, with many already receiving approval or awaiting clearance," Mahavir Lunawat, Managing Director at Pantomath Capital Advisors, said.
Investor participation
Demat accounts surge by 33% amid IPO boom
The Economic Survey 2025 also observed a sharp rise in demat accounts amid the IPO boom. The number of such accounts grew by 33% to 185 million at the end of December 2024, on a year-on-year (YoY) basis. "Higher investor participation has engendered a self-reinforcing cycle of strong market returns, bringing in even more investors," the survey stated.
Fundraising trends
QIPs emerge as preferred equity fundraising mechanism
The Economic Survey 2025 also revealed that Qualified Institutional Placements (QIPs) became the most preferred equity fundraising mechanism for corporates in FY25, accounting for 11.4% of total capital raised. Resource mobilization through rights issues also remained robust, with ₹16,881 crore raised during April to December 2024, as against ₹6,538 crore in the same period last year—an increase of around 158%.