If you are a stock market investor, and especially picking up IPOs (initial public offers) is your thing, then 2024 was a bumper year. Some of the big names, such as India's second largest passenger vehicle maker Hyundai, food delivery platform Swiggy, state-owned power behemoth NTPC's green energy arm, the housing finance arm of India's largest NBFC (non-banking finance company), Bajaj Finance, among others, were on the market.
As many as 91 companies raised close to Rs 1.60 lakh crore going public on the main board last year; that is three times more than the Rs 49,436 crore raised through 57 IPOs in 2023, according to data from Prime Database. The SME (small and medium enterprises) IPO market was also red hot in 2024, with 240 companies raising Rs 8,761 crore, an 87 per cent increase over the 4,686 crore from 182 issues in 2023.
In total, companies raised over Rs 3.73 lakh crore from the equity market (including IPOs, follow-on offers, and qualified institutional placements) in 2024, a 159 per cent jump from the Rs 1.44 lakh crore that was raised in 2023. Adding Rs 26,000 crore worth of rights issues, the total equity fundraising touched close to Rs 4 lakh crore last year.
With so many companies lining up their public issues, investors also queued up in big numbers. Of the 91 mainboard IPOs, 66 received a mega response, getting over-subscribed more than 10 times. Notably, among these, 35 issues were oversubscribed more than 50 times.
Pranav Haldea, managing director of Prime Database Group, says, "The IPO response was further buoyed by strong listing performance." Average listing gain based on the closing price on listing day increased over 30 per cent last year, he pointed out.
The public issue of Vibhor Steel Tubes saw a listing day gain of over 190 per cent. Mamata Machinery, BLS E-Services, Unicommerce eSolutions and Bajaj Housing Finance were the other IPOs that saw strong debuts.
"The record number of IPOs during the calendar year highlights the resilience and potential of the Indian economy. Companies across various sectors are recognising the value of public markets to support their growth strategies," pointed Sriram Krishnan, chief business development officer at the National Stock Exchange (NSE).
Outlook for 2025: More IPOs?
Did you miss out on IPO opportunities last year? Then, worry not, as 2025 looks to be another strong year for the primary market. As Haldea notes, the pipeline is "staggering." Around 28 companies looking to raise Rs 46,000 crore are presently holding approval from market regulator SEBI to go public. Additionally, another 80 companies looking to raise around Rs 1.32 lakh crore are awaiting SEBI approval.
According to Haldea, "2025 looks likely to be another record-breaking year for IPOs in India."
Recently, Bengaluru-based electric scooter maker Ather Energy received regulatory approval to go public. Quick-commerce major Zepto is also among the anticipated IPOs this year, according to reports. Wearables brand Boat, jewellery firm BlueStone, InCred Financial Services, and Ecom Express are some of the companies that could go public this year.