India’s equity fund raising in 2024 will be around Rs. 4 lakh crore, a 3-fold jump in IPO proceeds

In the year 2024, Indian equity fundraising will reach Rs. 3.99 lakh crore, which was mainly due to a deluge of initial share sales (IPOs) as investor appetite remained strong throughout the year. Excluding the rights issue, funds raised from equity amounted to Rs. 3.73 crore, which is 159% higher than the previous year period.

According to primedatabase.com, 91 Indian companies have raised Rs. 1.59 lakh crore were raised, which were listed on both the exchanges. This is more than 3 times the amount collected by companies in 2023. This year also saw Hyundai’s largest IPO, which raised Rs. 27,859 crore was collected.

New Age Technology Companies (NATCs) made a comeback after 2 quiet years with 8 IPOs (Awfis, Blackbuck, Digit Insurance, Firstcry, Ixigo, Mobikwik, Swiggy and Unicommerce) raising ₹21,438 crore.

The overall response from the public was excellent as 35 of the 91 IPOs received more than 50 times subscription and 66 of them received more than 10 times the response.

Interest levels from retail investors for IPOs also went through the roof as the average number of applications from retail rose to 18.87 lakh in 2024 from 13.21 lakh in the previous year. Waree Energies received the highest 70.13 lakh applications from retail.

The IPO response was further buoyed by a strong listing performance where the average listing gain rose to 30.25% compared to 28.68%. About 61 out of 91 IPOs returned more than 10% on the day of listing.

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Currently, about 65 of the 91 IPOs that hit the market in 2024 are trading above the issue price. In fact, the average gain of the 91 IPOs of 2024 has been 44.31%.

Similarly, the average absolute return of IPOs from 2019, 2020, 2021, 2022 and 2023 is 486%, 401%, 119%, 113% and 93% respectively, primedatabase.com data shows. According to Haldia, MD, Prime Database Group, this shatters the myth that IPOs are “always overpriced” and don’t deliver long-term returns.

Fund raising through debt is also Rs. 11.05 lakh crore reached an all-time high of which Rs. 10.93 lakh crore through private placement of debt and Rs. 11,625 crore was through public bonds (including InvITs/ReITs).

In the year 2024, an all-time high of 167 companies filed their offer documents with SEBI for approval. The outlook for 2025 is equally promising, with 28 companies worth Rs. 46,000 crore, they currently have SEBI’s approval and 80 other companies have raised around Rs. 1,32,000 crore is awaiting approval from SEBI.

SME IPO market

240 SME IPOs totaling Rs. Activity in this segment has also been strong, raising 8,761 crore, up from 182 IPOs last year at Rs. 4,686 crore is 87% more than Rs.