India’s IPO boom: ₹2 lakh crore fundraising expected in 2025

India's record-breaking fundraising spree in the primary market is likely to continue in 2025, with many companies lining up with their public issues. The initial public offering (IPO) activity is expected to cross ₹2 lakh crore in value this year, with more than 100 companies, including some big players such as JSW Cement, HDFC Credila, Indira IVF, Zepto, Flipkart, set to hit D-Street in 2025.

A total of 28 companies, with plans to raise ₹46,000 crore, have received SEBI approval and are poised to enter the market, while another 80 firms, aiming to raise approximately ₹1,32,000 crore, are awaiting regulatory clearance, according to data from Prime Database.

Out of 108 companies, 2 are new-age tech companies (NATCs) which are looking to raise around ₹3,600 crore.

According to Pranav Haldea, Managing Director, PRIME Database Group, this year looks likely to be yet another record-breaking year for IPOs in India. He points out that many companies are preparing to file their offer documents in the near future.

The data reveals a record 167 companies filed their offer documents with SEBI for approval in 2024, nearly doubling from 84 in 2023. Meanwhile, 13 companies seeking to raise ₹18,000 crore allowed their approvals to lapse, six companies aiming for ₹13,350 crore withdrew their filings, and SEBI returned offer documents for 16 companies looking to raise ₹25,000 crore.

In 2024, 91 Indian corporates raised a record ₹1,59,784 crore through main board IPOs, more than three times the ₹49,436 crore mobilised by 57 IPOs in 2023. The largest IPO of the year was Hyundai Motor (₹27,859 crore), followed by Swiggy (₹11,327 crore) and NTPC Green Energy (₹4,275 crore). At the other end, the smallest IPO was Vibhor Steel Tubes, which raised just ₹72 crore. The average deal size doubled to ₹1,756 crore, up from ₹867 crore last year.

According to Prime Database, the overall public response was exceptional. Of the 91 IPOs, 66 received an overwhelming subscription of over 10 times, with 35 surpassing 50 times. Meanwhile, 10 IPOs were oversubscribed by more than 3 times, while the remaining 15 IPOs saw subscriptions ranging between 1 and 3 times.

Retail investor interest surged further in 2024, with the average number of applications rising to 18.87 lakh, up from 13.21 lakh in the previous year. The highest number of retail applications was received by Waaree Energies (70.13 lakh), followed by Bajaj Housing Finance (58.66 lakh) and KRN Heat Exchanger & Refrigeration (55.23 lakh).

Retail investors applied for shares worth ₹3.40 lakh crore, which was 113% higher than the total IPO mobilisation—though lower than the 203% excess recorded in 2023—demonstrating sustained enthusiasm. However, the actual allocation to retail investors stood at ₹38,460 crore, accounting for 24% of the total IPO mobilisation, down from 28% in 2023.

On the listing front, the average listing gain (based on the closing price on the listing date) increased to 30.25%, up from 28.68% in 2023. 61 out of 91 IPOs delivered listing gains of over 10%, with Vibhor Steel Tubes leading at 193%, followed by BLS E-Services (175%) and Mamata Machinery (159%).

According to exchange data, 65 of the 91 IPOs are currently trading above their issue price. The average gain for IPOs in 2024 stands at an impressive 44.31%. Additionally, the average absolute gains of IPOs from 2019 to 2023 have been 486%, 401%, 119%, 113%, and 93%, respectively, based on closing prices as of January 7, 2025.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)