Year Ender 2024: Tremendous boom in IPO market this year, 90 companies raised Rs 1.6 lakh crore

New Delhi: Due to the pace of economic growth, favorable market conditions and improvement in the regulatory framework, the IPO market has seen a lot of growth this year i.e. 2024. During the year, companies have raised a record amount of Rs 1.6 lakh crore through IPOs. It is believed that next year will also be very good for IPOs. This extraordinary year for IPOs not only reflects the confidence of the companies issuing issues, but also reflects the confidence of investors. Apart from earning profits on the day of listing, investors have also expressed confidence in the capabilities of the companies for the long term. Hyundai Motor India had an IPO worth Rs 27,870 crore this year. This is the largest IPO in the history of the country.

During this year, big, medium and small companies raised a lot of money by issuing shares. The average size of IPO increases to Rs 1,700 crore in 2024. In 2023 it was Rs 867 crore. There have been at least 15 IPOs in December alone. According to V Prashant Rao, director and head, Anand Rathi Advisors, the rising participation of retail investors and active participation of foreign portfolio investors (FPIs), increased private capital expenditure and the government's focus on infrastructure and key sectors will collectively drive the IPO market. Fund raising activities gained momentum.

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Record will be made in IPO market next year also

Market analysts believe that there will be a rise in the activities of raising funds through IPO in the new year also. The number of IPOs in the next year i.e. 2025 may exceed this year's figure. Munish Aggarwal, managing director and head of equity capital markets at Equirus, said 75 IPO documents are currently in various stages of approval. On this basis, we believe that in 2025, companies can raise up to Rs 2.5 lakh crore through IPO. The companies whose IPOs are coming next year include the proposed issue of Rs 12,500 crore of HDB Financial Services.

Companies raised Rs 1.6 lakh crore through IPO

Apart from this, an issue of Rs 15,000 crore of LG Electronics India and an IPO of Rs 9,950 crore of Hexaware Technologies are also proposed. According to data available with the exchange, there were 90 IPOs in 2024 through which Rs 1.6 lakh crore was collectively raised. This includes eight IPOs ending on December 23-24. Apart from this, the Rs 500 crore IPO of Unimech Aerospace and Manufacturing is scheduled to open on December 23. Also, Vodafone Idea has raised Rs 18,000 crore through follow-on public offering (FPO). Last year i.e. in 2023, 57 companies had raised an amount of Rs 49,436 crore from IPO.

IPO market was worth Rs 1.2 lakh crore in the year 2021

In the year 2021, 63 companies had raised Rs 1.2 lakh crore from IPO. This was the highest figure in two decades. According to data from PrimeDatabase.com, the IPO market of small and medium companies (SMEs) has also seen a lot of growth this year. During the year, 238 small and medium companies have raised Rs 8,700 crore by issuing shares. An amount of Rs 4,686 crore was raised through SME IPO in 2023. The biggest IPO of this year was that of Hyundai Motor India (27,870 crore). It was followed by Swiggy (Rs 11,327 crore), NTPC Green Energy (Rs 10,000 crore), Bajaj Housing Finance (Rs 6,560 crore) and Ola Electric Mobility (Rs 6,145 crore). In contrast, the IPO size of Vibhor Steel Tubes was the smallest i.e. Rs 72 crore.