India’s Initial Public Offering (IPO) market is poised for even greater success in 2025, with projections indicating a continuation of the strong growth seen in 2024. According to a report by GlobalData, the IPO pipeline for 2025 promises to surpass last year’s record-breaking performance, driven by increased retail participation, substantial domestic inflows, and the resilience of foreign portfolio investors (FPIs).
Murthy Grandhi, Company Profiles Analyst at GlobalData, highlighted that 2024 saw India’s IPO proceeds soar to $11.2 billion in 2024, showing a two fold growth from $5.5 billion raised in 2023. He mentioned that the IPO proceeds will only intensify in 2025, with factors such as government-backed infrastructure initiatives and a surge in private capital expenditure continuing to fuel market optimism.
Grandhi said,”The IPO pipeline for 2025 holds even bigger promises, as India’s financial ecosystem gains strength, making it an attractive hub for investors globally,”. The prediction marks India as a key player in the global IPO landscape, with expectations that the country will continue to lead the Asia-Pacific region in IPO activity.
Key IPOs in 2024
Notable IPOs that contributed to India’s record-breaking year include Hyundai Motor’s $3.3 billion offering, Swiggy’s $1.3 billion IPO, NTPC Green Energy’s $1.2 billion issue, Vishal Mega Mart’s $0.9 billion listing, and Bajaj Housing Finance’s $0.8 billion offering.
Global IPO markets
While India took the lead in the Asia-Pacific (APAC) region, other countries also experienced significant IPO activity. Japan saw an astounding 275.1 percent growth in its IPO market, raising USD 12.6 billion from 69 IPOs. Malaysia recorded a 145.9 percent increase, generating USD 1.1 billion from 36 IPOs. In contrast, China experienced a steep decline in IPO numbers, with a 51.3 percent drop attributed to tightening regulations, raising only USD 5.2 billion through 64 IPOs.
Overall, the APAC region recorded 604 IPOs, collectively raising USD 33.9 billion—an increase of 21.5 percent from 2023. India emerged as the top performer, with over 200 companies going public in 2024, according to GlobalData.
The technology and communications sector led the charge in the APAC region, accounting for 118 transactions worth USD 3.8 billion, followed by the financial services sector with 60 deals generating USD 2.6 billion. Standout global IPOs included Lineage Inc’s USD 4.4 billion offering and Tokyo Metro’s USD 3.2 billion listing, both in Japan.
GlobalData’s report indicates that the IPO market in 2025 will surpass 2024’s strong performance, though global factors like Federal Reserve rate decisions and emerging market performance will influence the trajectory. India’s IPO boom, driven by investor confidence and government policies, highlights the growing importance of its capital markets and sets the stage for continued growth.
(With ANI Inputs)