Do you know: India led global IPO listings in FY24
What's the story
India dominated the global Initial Public Offerings (IPOs) in FY24, witnessing a 66% increase in IPO launches. The number of IPOs rose to 272 from 164 in the previous fiscal year (FY), contributing to a capital formation of ₹10.9 lakh crore, according to the Economic Survey 2024. The survey revealed that over three-fourths of this capital was generated through debt issuances, accounting for nearly "29% of the Gross Fixed Capital Formation of private and state-run corporates in FY23."
Investment climate
Economic performance fuels primary market activity
The surge in primary market activity was attributed to a healthy economic performance and a favorable investment climate for Indian equities. The Economic Survey 2024 highlighted that all modes of fundraising — equity, debt, and hybrid — experienced strong year-on-year (YoY) growth. Notably, the hybrid route saw an impressive rise of over 513.6% in FY24. "Qualified Institutional Placements (QIPs) emerged as a critical equity fundraising mechanism for the corporates during FY24," the survey reported.
Fundraising success
Significant growth in rights issues and SMEs
Funds raised via rights issues more than doubled to ₹15,110 crore during FY24. In terms of IPO action, the amount raised through this route increased by 24% to ₹67,995 crore in FY24. EY Global confirms India's position as the global leader in IPO listings last FY. The Small and Medium Enterprises (SME) platform also saw significant activity with the number of SME IPOs and Follow-on Public Offers (FPOs) rising by 1.6 times to 196 in FY24 from 125 in FY23.