Kotak Mahindra Capital Company's Optimistic Projection for 2025

MUMBAI: In a recent announcement, Kotak Mahindra Capital Company (KMCC) has projected an impressive $35 billion for the initial public offer (IPO) market pipeline by 2025. This forecast marks a significant leap from the $22 billion raised by companies in 2024, underscoring a robust growth trajectory in the IPO market.

Financial Services and Digital Tech Lead the Charge

The financial services sector is poised to dominate the IPO landscape with a substantial $9 billion, featuring notable entities such as HDB Financial Services, Avanse Financial Services, and Tata Capital. Close on its heels, the digital technology sector is expected to contribute $5 billion, with industry leaders like Ecom Express, Ola, Zept, and Pepperfry anticipated to make their market debut.

Increasing IPO Sizes and Market Preferences

KMCC highlighted a consistent increase in IPO sizes, with companies increasingly viewing public offerings as a viable funding avenue for their investments. The average listing day premium for the 91 IPOs launched in 2024 stood at an encouraging 32.8 percent, reflecting strong market confidence and investor appetite.

Foreign portfolio investors are showing a marked preference for IPOs over the secondary market route, a trend that underscores the attractiveness of India's burgeoning market. The successful Rs 27,000 crore offer by Hyundai has further emboldened multinational corporations to consider unlocking the value of their investments through IPOs.