India's IPO boom: Record ₹1.19 lakh crore raised in 2024
India's Initial Public Offering (IPO) market has seen a historic surge in 2024, raising an unprecedented ₹1.19 lakh crore. The remarkable growth is due to strong investor demand, fueled by excess liquidity and robust returns from recent IPOs. The successful issues of Swiggy and ACME Solar have further cemented this year as a landmark one for Indian IPOs.
Swiggy and ACME Solar's listings boost India's IPO market
The successful closure of Swiggy's ₹11,300 crore public issue and ACME Solar's ₹2,900 crore share sale has set a new record for India's primary market. The total amount raised from IPOs this year has now exceeded the previous record of ₹1.18 lakh crore set in 2021. This achievement highlights the strong investor interest in Indian start-ups and their growth potential.
India ranks 2nd in global IPO fundraising
India's IPO fundraising this year is the second highest in the world, only behind the US, which has raised $26.3 billion. China ranks third with $10.7 billion raised, according to Refinitiv data. High valuations in the secondary market and excess liquidity with institutional investors have led to strong demand for public issues this year, industry experts said.
Investor interest remains high despite secondary market volatility
V Jayasankar, head of equity capital markets at Kotak Investment Banking, observed that fund inflows in primary markets are strong from domestic investors. He emphasized that foreign investors have been aggressive in the primary market despite being sellers in the secondary market. Despite high volatility in the secondary market, large IPOs like Swiggy received strong demand with quality anchor investors, showing a huge appetite for IPOs in India.
Hyundai Motor's record-breaking IPO and investor commitment
In October, Hyundai Motor raised a record ₹27,870 crore through an IPO that was oversubscribed 2.37 times. It beat the previous record of Life Insurance Corporation of India's ₹21,008 crore IPO in May 2022. Investment banker Ravi Sardana said most IPOs listed this year have given strong returns, prompting investors to put in more money in the primary market.
Rising demat accounts indicate growing investor base
The number of demat accounts in India has surged to 179 million in October 2024, an increase of 35 million accounts this calendar year. The spike reflects a growing investor base with new categories of retail and high net worth investors (HNIs) making their way into the IPO market. The trend indicates a continued interest and faith in India's start-up ecosystem and its ability to deliver strong returns.
