India is set to witness a historic surge in Initial Public Offerings (IPOs), with equity fundraising projected to exceed ₹2 trillion in 2025, according to a report by Pantomath Group. The report highlights India’s emergence as a global leader in IPO activity, solidifying its position as an economic powerhouse in the capital markets.
Record-breaking IPO activity in 2024
In the first 11 months of 2024, 76 companies collectively raised ₹1.3 trillion, reflecting a robust and vibrant market. India listed 332 IPOs, nearly double the number in the United States (205) and 2.5 times that of Europe (130). This achievement marks India’s ascension as a global leader in IPO volume for the first time, surpassing major economies such as the US and China.
Mahavir Lunawat, Managing Director of Pantomath Capital, remarked, “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.”
Investor enthusiasm reaches new heights
The report highlights the dramatic rise in average IPO subscription rates, which increased from 16x in 2022 to an impressive 64x in 2024. This indicates heightened investor interest, fueled by strong returns and favorable valuations. Over 53 of the 76 main-board IPOs are trading at a premium, with 11 companies achieving over 100% gains from their offer prices.
Sectoral growth driving the market
Key sectors driving India’s IPO boom include Industrials, Health Care, and Consumer Discretionary, collectively accounting for nearly 60% of market activity. This sectoral diversity underscores India’s economic resilience and capacity for innovation.
Strong outlook for 2025
With 34 companies already securing SEBI approval to raise ₹41,462 crore and another 55 firms awaiting clearance for ₹98,672 crore, 2025 promises to be a record-breaking year. A remarkable 143 Draft Red Herring Prospectuses (DRHPs) were filed in 2024, compared to 84 in 2023, signaling sustained momentum.
Lunawat concluded, “With continued market momentum, we now project equity raised through IPOs to cross ₹2 trillion in 2025.”
Positive implications for India
India’s booming IPO market is a testament to its economic resilience, regulatory strength, and investor confidence. By attracting global players and showcasing innovation across industries, India cements its status as a key global financial hub.
