India’s IPO Market Hits Historic Milestone, Doubling Proceeds in 2024

India's initial public offering (IPO) market has achieved a historic milestone, with proceeds soaring to $11.2 billion in 2024, more than double the $5.5 billion raised in 2023, according to a report by GlobalData. Murthy Grandhi, Company Profiles Analyst at GlobalData, predicts "even bigger fireworks" for 2025, fueled by strong retail participation, substantial domestic inflows, and the growing presence of Foreign Portfolio Investors (FPIs), despite their net selling in the secondary market.

Grandhi stated, "India's IPO market hit a bull run in 2024, reflecting issuer confidence and investors' insatiable appetite for listing-day pops and long-term growth plays." He credited the government's emphasis on infrastructure development and increased private capital expenditure as key drivers behind the market’s growth. He also highlighted that India's IPO boom signifies the resilience and evolution of the country's financial ecosystem, positioning India as a global capital fundraising hub.

Notable IPOs in India in 2024 included Hyundai Motor's $3.3 billion offering, Swiggy's $1.3 billion listing, NTPC Green Energy's $1.2 billion IPO, Vishal Mega Mart's $0.9 billion issue, and Bajaj Housing Finance’s $0.8 billion offering.

In comparison, other Asia-Pacific (APAC) nations also saw significant IPO activity. Japan experienced a remarkable 275.1% growth, with 69 IPOs raising $12.6 billion. Malaysia recorded a 145.9% increase, raising $1.1 billion through 36 IPOs. However, China saw a sharp decline in IPO numbers, with a 51.3% drop due to tightened regulations, resulting in 64 IPOs raising just over $5.2 billion.

Across the APAC region, a total of 604 IPOs raised $33.9 billion, marking a 21.5% increase in proceeds compared to 2023. India led the region, with over 200 companies going public, according to GlobalData. The technology and communications sector dominated the APAC IPO market, with 118 transactions raising $3.8 billion, followed by the financial services sector, which recorded 60 deals worth $2.6 billion.

Globally, the IPO market is expected to surpass 2024's activity in 2025, with a strong pipeline in place. However, the trajectory will depend on global factors, such as the Federal Reserve's rate decisions and emerging market performance.