According to Pantomath Group data, India has emerged as the global leader in Initial Public Offerings (IPOs), with twice as many as the United States and 2.5 times more than Europe. In the first eleven months of 2024 alone, 76 enterprises raised Rs 1.3 trillion. Pantomath Group's research now expects a record-breaking IPO fundraising of more than Rs 2 trillion in 2025.
"India accomplished a historic milestone by surpassing both the US and Europe in terms of IPO volume for the first time, with nearly twice as many IPOs listed as the US and two-and-a-half times more than Europe. In contrast, the United States regained the lead in IPO proceeds for the first time since the peak in 2021, cementing its position as the most vibrant and desirable market for global investors, according to the research.
Meanwhile, stricter controls in mainland China have resulted in the region's worst IPO performance in ten years. The Technology, Media, and Telecommunications (TMT), industrial, and consumer sectors were the primary drivers of worldwide IPO activity, accounting for over 60% of total IPOs by number and proceeds.
The table above reveals that India leads the world in IPO activity, with 332 IPOs, well exceeding the United States (205) and China (130). Western Europe and Japan fall far behind, with 64 and 80 IPOs, respectively. This shows that India has a thriving IPO market.
Despite having fewer IPOs, the United States leads in total IPO value with $35.6 billion, indicating greater IPO sizes on average. India follows with $22.7 billion, indicating a thriving but smaller-scale IPO sector. Western Europe and China have comparable IPO valuations of $17.7 billion and $17.0 billion, respectively, whereas Japan lags substantially behind at only $2.3 billion. This demonstrates the variation in the size of IPOs between geographies.
The average IPO size (2014-2024) follows a variable but usually rising trend, with notable peaks in 2017, 2021, and 2024. This suggests that corporations are increasingly raising larger amounts of capital through public offerings. The 2024 rise shows that market circumstances and investor confidence have produced an environment conducive to larger-scale IPOs. It also illustrates a shift toward big-ticket listings, reflecting the increased maturity of companies joining public markets and the Indian IPO ecosystem's ability to accommodate large fundraises.
The chart of typical IPO subscription rates shows a significant growth, from 16x in 2022 to 64x in 2024. This indicates increased investor interest and enthusiasm, fueled by high returns and favorable prices. It also shows a supply-demand imbalance, with more investors than available shares, signaling a bullish market mood. Such high subscription rates may present difficulties for regular investors in obtaining allocations.
The pie chart depicts the sectoral composition, with Industrials accounting for 30%, making it the greatest contributor. Health Care is next with an 18% stake, followed by Consumer Discretionary and Financials at 11% and 9%, respectively. Information Technology accounts for 6%, with Real Estate and Energy each contributing 4%. Utilities (2%), Materials (1%), and Communication Services (3%) are among the smaller sectors. This distribution shows a strong reliance on the Industrials, Health Care, and Consumer Discretionary sectors, reflecting their importance in the overall market, while other sectors make minor contributions.
Among the 76 main-board IPOs announced so far, 53 are trading at a premium to their offer prices, with 11 trading at more than 100% over their offer prices. Four of the 76 main-board IPOs began at a premium greater than 100%, while 17 debuted at a discount to their offer prices.
"Multinational firms have proved the strategic benefits of listing in India." Factors like as lower capital costs, a large consumer market, and a strong regulatory regime entice global investors to seek Indian markets for their equity offerings. "Increasing multinational corporations' participation on Indian exchanges adds a new dimension to the Indian capital market," stated Mahavir Lunawat, Managing Director of Pantomath Capital, India's biggest mid-market investment bank.
2025 Outlook:
For 2025, 34 businesses have already received SEBI approval for IPOs totaling Rs 41,462 crore. In addition, 55 enterprises are awaiting regulatory approval with plans to raise approximately Rs 98,672 crore. A company has a one-year window from the date of SEBI approval to conduct its IPO. Notably, a record 143 DRHPs were filed with SEBI in 2024, up from 84 in 2023 and 89 in 2022. This record-breaking spike in IPO draft filings follows excellent market performance, which suggests that strong fundraising will continue through the IPO in the following year.
"With the continued momentum in the markets, we now project that equity raised through IPOs will cross Rs 2 trillion in the year 2025," according to Lunawat.
