As we near the end of 2024, it’s clear that this year has been a milestone for Initial Public Offerings (IPOs) in India. With numerous big names making their debut on the stock market, this year has set a benchmark by raising a record amount of funds through IPOs. According to market reports, Indian companies have collectively attracted a whopping ₹1.6 lakh crore from IPOs in 2024. With excitement rising, investors and analysts are already turning their gaze towards 2025, predicting another groundbreaking year of IPO activities.
The Biggest IPO of 2024: Hyundai Motor India
While several companies have captured the investor’s eye this year, Hyundai Motor India’s IPO stands out as the most significant one. Garnering a massive ₹27,870 crore, it has not only set records but also stoked interest in the potential for large-scale IPOs in the future. Given the positive response to the IPO market observed in 2024, both large-cap and small-cap companies have been encouraged to explore opportunities to go public. The average issue size surged from ₹867 crore in 2023 to over ₹1,700 crore this year, marking a significant uptick in the scale of public offerings.
Today’s New Entrant: Unimech Aerospace
December alone saw the launch of at least 15 IPOs, and today’s star is Unimech Aerospace. Investors can bid on this offering from December 23rd to December 26th, with the company setting its price band at ₹785 per share. Experts credit the growing retail participation, robust domestic inflows, and active involvement of foreign investors for the robust IPO market. These elements form a strong foundation for companies to focus on IPOs as a viable path for fundraising.
Anticipating a Blockbuster 2025
Looking forward, market experts believe that the pace of raising funds might pick up even more in 2025, potentially surpassing the accomplishments of 2024. There are at least 75 IPOs in the pipeline for the coming year. With this momentum, it’s projected that public fundraising activities could exceed ₹2.5 lakh crore in 2025. Excitement is already brewing with HBD Financial Services planning a ₹12,500 crore IPO, LG Electronics India eyeing ₹15,000 crore, and Hexaware Technologies set to propose an IPO of ₹9,950 crore.
Statistics that Tell the Tale
Delving into the numbers, data available from exchanges reveals that 2024 witnessed 90 public issues, raising a total of ₹1.6 lakh crore. This is a significant jump from the previous year’s tally, where 57 companies amassed ₹49,436 crore through IPOs. To put it in perspective, 2021 had been the best year in the previous two decades, with 63 companies raising ₹1.2 lakh crore. Analysts believe that if trends persist, 2025 could outshine even this remarkable year.
As the excitement around IPOs gathers steam, both seasoned investors and newcomers are eager to see what unfolds. It’s a time of change, growth, and thrilling possibilities for the Indian stock market. As companies continue to leverage this powerful tool for raising capital, the coming year promises to be as dynamic and exciting as the one we’ve witnessed, if not more.
