The year 2024 is shaping up as a defining one for Initial Public Offerings (IPOs), with India securing its position as the shttps://www.sahiprojectreport.com/econd-largest IPO market globally, following the United States. As companies capitalize on a surge in investor appetite, the primary market in India has broken previous records, showcasing its resilience amid global economic uncertainties.
India Sets a Record in IPO Fundraising
₹1.19 Lakh Crore Raised Through IPOs
India has raised a staggering ₹1.19 lakh crore through IPOs in 2024, surpassing its previous record of ₹1.12 lakh crore in 2017. This fundraising achievement places India second globally, behind the US, while China follows in third place with $7 billion raised.
Top IPOs Driving the Boom
1. Hyundai Motors India
- Amount Raised: ₹27,870 crore
- Subscription Rate: Oversubscribed 237 times
This IPO not only became the largest of the year but also highlighted the immense investor confidence in India’s equity markets.
2. Swiggy IPO
- Subscription Rate: 3.6 times
After a slow start, the Swiggy IPO gained momentum and closed with strong demand, underscoring the growing appetite for high-growth tech companies.
3. ACME Solar
ACME Solar’s IPO added to the robust fundraising activity, reflecting the appeal of renewable energy investments in the Indian market.
Foreign Portfolio Investors (FPIs): Key Market Movers
Despite selling shares worth ₹96,946 crore in the secondary market, FPIs have infused ₹2.87 lakh crore into India’s primary market. This indicates a strategic focus on IPOs as the preferred investment avenue, driven by:
- Expensive Valuations: Secondary market valuations deterred investments.
- Strong Domestic Liquidity: Domestic institutional investors contributed significantly to the success of public issues.
Global IPO Rankings: India Among the Top Players
| Country | IPO Fundraising (2024) |
|---|---|
| United States | $19 billion |
| India | ₹1.19 lakh crore |
| China | $7 billion |
India’s rapid ascent in global IPO rankings underscores its robust economic fundamentals and the growing confidence of institutional investors in the country’s markets.
Why 2024 is a Landmark Year for IPOs
1. Institutional Support
Large institutional investors and anchor investors have shown a strong appetite for quality IPOs, ensuring oversubscription in many cases.
2. Robust Domestic Liquidity
Domestic investors, buoyed by excess liquidity, have played a crucial role in driving demand for public issues.
3. Diverse Sectors
The IPOs have spanned across multiple sectors, including technology (Swiggy), renewable energy (ACME Solar), and automotive (Hyundai Motors).
A Warning on Small Loans Amid IPO Buzz
Amid the IPO boom, experts have issued a warning regarding the increasing risks associated with small loans. It’s essential for stakeholders to maintain caution and scrutinize these financial products to ensure sustainable growth.
Comparative Look: 2024 vs. 2017
| Year | Amount Raised (₹ Crore) | Biggest IPO |
|---|---|---|
| 2017 | 1,12,347 | Housing Electric |
| 2024 | 1,19,000 | Hyundai Motors India |
2024 not only broke the record set in 2017 but also positioned India as a critical player in the global IPO landscape.
FAQs: Common Questions About India’s IPO Market in 2024
1. Why is 2024 a record-breaking year for IPOs in India?
2024 saw India raising ₹1.19 lakh crore through IPOs, driven by strong investor demand, institutional support, and diverse sector participation. This surpassed the previous record set in 2017.
2. Which was the largest IPO in India in 2024?
The Hyundai Motors India IPO was the largest in 2024, raising ₹27,870 crore and being oversubscribed 237 times.
3. What role did FPIs play in the Indian IPO market in 2024?
While FPIs sold shares worth ₹96,946 crore in the secondary market, they invested ₹2.87 lakh crore in India’s primary market, showing a strong preference for IPOs.
4. How did domestic investors contribute to the IPO boom?
Domestic investors, supported by strong liquidity, were instrumental in driving demand for IPOs. Their confidence ensured the oversubscription of major public issues.
5. How does India rank globally in IPO fundraising?
In 2024, India secured the second position globally in IPO fundraising, amassing ₹1.19 lakh crore. The United States led with $19 billion, approximately ₹1.58 lakh crore, while China followed with $7 billion, around ₹58,100 crore. These figures underscore India’s significant role in the global IPO landscape.
Conclusion: The Rise of India’s Primary Market
The Indian IPO market in 2024 has proven to be a global success story. With record-breaking fundraising, strong investor participation, and support from domestic and institutional players, India is poised to maintain its momentum in the years ahead.
As foreign portfolio investors shift their focus to primary markets, and domestic investors continue to exhibit confidence, India is cementing its status as a global IPO powerhouse.
For more insights into India’s financial landscape and IPO trends, visit SmartTaxSaver.com.
