Mumbai: According to a report by Motilal Oswal, 2024 has emerged as a landmark year for initial public offerings (IPOs) in the Indian primary market.
The report indicates that an unprecedented Rs 1.8 trillion has been raised through over 317 IPOs this year, surpassing the previous record of Rs 1.3 trillion set in 2021 and significantly exceeding last year's total of Rs 576 billion.
It stated, "CY24 has been a blockbuster year for the Indian primary market, with INR1.8t raised through more than 317 IPOs to date - an all-time high."
The remarkable growth has been attributed to the evolving dynamics of the Indian equity market and strong fund inflows. Equity issuances across various categories have increased by approximately 2.6 times compared to the previous year.
This increase highlights the changing landscape of the Indian capital market, which continues to draw investors with a variety of opportunities.
The report also noted that this year's IPO market has demonstrated exceptional diversity, with companies from numerous sectors participating. This marks a departure from previous years, where IPO activity was typically concentrated in a limited number of emerging industries.
The broader sectoral representation in IPOs is viewed as a positive trend for the Indian capital market, providing investors with multiple pathways to engage in the nation's growth narrative.
The report highlighted that the benchmark index, Nifty 50, surpassed the 26,000 threshold in September 2024, marking a year-to-date increase of around 12 percent. While this figure is somewhat lower than the 20 percent growth seen in 2023, it still signifies a commendable performance.
Furthermore, the report emphasized the strong momentum within the Indian IPO market, fueled by a changing investment environment and robust capital inflows. The record levels of fundraising and diversification across sectors have set the stage for ongoing growth in the Indian primary market, showcasing investor confidence in the country's economic outlook.
As 2024 comes to a close, the performance of the Indian IPO market reflects the growing maturity and resilience of the nation's capital markets.
