India's IPO Market Hits Historic Highs

India's IPO market has witnessed a monumental leap, with proceeds doubling from $5.5 billion in 2023 to an impressive $11.2 billion in 2024, according to a Global Data report. Murthy Grandhi, Company Profiles Analyst at GlobalData, predicts an even more explosive 2025, driven by skyrocketing retail participation, substantial domestic inflows, and foreign portfolio investors (FPIs) making significant moves despite being net sellers in the secondary market.

Key Drivers Behind the Boom

The government's focus on infrastructure and core sector development, alongside increased private capital expenditure, has been pivotal in enhancing market dynamism. Grandhi emphasizes that this IPO boom is not just a numerical achievement but a testament to the evolution and resilience of India's financial ecosystem, positioning the country as a global hub for capital fundraising.

Notable IPOs in 2024

India's key IPOs in 2024 included Hyundai Motor's $3.3 billion issue, Swiggy's $1.3 billion offering, NTPC Green Energy's $1.2 billion IPO, Vishal Mega Mart's $0.9 billion listing, and Bajaj Housing Finance's $0.8 billion issue, showcasing the diverse sectors contributing to this growth.

APAC IPO Market Overview

Other Asia-Pacific nations have also reported significant IPO activities. Japan experienced a phenomenal 275.1% growth, with 69 IPOs generating $12.6 billion, while Malaysia saw a 145.9% increase, with 36 IPOs raising $1.1 billion. However, China faced a substantial decline in IPO numbers, with a 51.3% drop due to tightened regulations, raising just over $5.2 billion from 64 IPOs.

Looking Ahead to 2025

The APAC region recorded 604 IPOs, raising a total of $33.9 billion, marking a 21.5% increase in proceeds compared to 2023. With a strong pipeline already in place, the global IPO market in 2025 is expected to surpass 2024's activity, albeit influenced by global factors such as Federal Reserve rate decisions and the performance of emerging markets.