2 days Ago
“With the continued momentum in the markets , we now project that equity raised through IPOs will cross Rs 2 lakh crore in the year 2025 as mentioned in our Calendar year report,” says Mahavir Lunawat , MD, Pantomath Group . In an interview with ETMarkets, Lunawat said: “In 2025, sectors like Consumer Technology, Telecommunications, Financial Services, Electric Vehicles, Healthcare, Logistics, new-age tech startups and Manufacturing are set to dominate IPO activity, driven by favorable market conditions and policy support,” Edited excerpts: How has the Indian IPO market managed to outperform global markets, especially those in the US, Japan, and China? The Indian IPO market outperformed global markets in 2024 and emerged as a global leader, achieving a historic milestone by securing the top position in IPO volumes for the first time. In 2024, India recorded 332 IPOs, nearly double the number listed in the US (205) and two-and-a-half times more than Europe.
This performance highlights India’s growing economic momentum and entrepreneurial strength. In 2024 Indian IPO market outshined global peers, raising INR 1, 34,302 crore through 76 IPOs, showcasing resilience amid global uncertainties. Stock Trading Masterclass on Value Investing and Company Valuation By - The Economic Times, Get Certified By India's Top Business News Brand View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.
com View Program Stock Trading Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading Dow Theory Made Easy By - Vishal Mehta, Independent Systematic Trader View Program Stock Trading Market 103: Mastering Trends with RMI and Techno-Funda Insights By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading ROC Made Easy: Master Course for ROC Stock Indicator By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Heikin Ashi Trading Tactics: Master the Art of Trading By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading RSI Made Easy: RSI Trading Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Introduction to Technical Analysis & Candlestick Theory By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program While the US regained its lead in IPO proceeds, and global markets saw 1,215 deals raising $121.
2 billion, India’s performance stood out due to strong domestic growth, policy stability, and investor confidence. In contrast, China faced its weakest IPO performance in a decade due to stricter regulations. While global markets like the US and Japan were influenced by geopolitical uncertainties and fluctuating interest rate policies, India benefited from record-high equity indices, robust corporate earnings, India's vibrant entrepreneurial ecosystem, attractive valuations, and a diversified IPO pipeline drew substantial global and domestic investor interest.
Government-led infrastructure investments and streamlined regulatory reforms further added to its outperformance over the global market. Which sectors are poised to lead IPO activity in 2025, and what makes them attractive for investors? In 2025, sectors like Consumer Technology, Telecommunications, Financial Services, Electric Vehicles, Healthcare, Logistics, new-age tech startups and Manufacturing are set to dominate IPO activity, driven by favorable market conditions and policy support. The government has taken significant steps to promote sector growth, including spectrum allocation, tax incentives, and regulatory reforms.
The Union budget also allocated Rs.116, 342 (US $ 13.98 billion) to the Department of Telecommunications and IT so we could see companies from Telecommunication sector.
India’s Banking and Financial services sector is the cornerstone of it’s economy. The sector encompasses wide range of services and is also a leader in digital finance, with Unified Payments Interface (UPI). Healthcare and Logistics are experiencing rapid expansion due to evolving consumer needs and advancements in supply chain technologies.
These factors, combined with India's robust entrepreneurial ecosystem and increasing investor confidence, make 2025 a promising year for IPOs. What is the kind of fundraising you foresee for 2025 both for mainboard and SME? In our Recap 2024. Crystal Gaze 2025 report, Pantomath was the first to anticipate that IPO fundraising in FY25 would surpass Rs 1 lakh crore—a target that has already been exceeded well ahead of expectations.
With the continued momentum in the markets, we now project that equity raised through IPOs will cross Rs 2 lakh crore in the year 2025 as mentioned in our Calendar year report “ What 2024 Gave : What 2025 Brings in Store." What opportunities and challenges do you foresee for the Indian IPO market in 2025? Major trends such as changes in fiscal and monetary policies, geopolitical tensions and global supply chains, advancements in AI and digital transformation, shifting ESG priorities, and the impact of the new US administration are significantly shaping the global IPO market. Despite these influences, the IPO market is set for strong performance in 2025, driven by a cautiously optimistic economic outlook, accommodative monetary policies, and high levels of liquidity and valuation.
In India, while there are short-term challenges such as geopolitical tensions, weak corporate earnings, a slowing economy, and ongoing foreign outflows in secondary markets may persist, the long-term outlook remains positive. High-quality IPOs from companies with strong profitability and clear business prospects are expected to attract substantial demand. Are there any emerging sectors or industries that are likely to dominate the IPO pipeline in 2025? According to current market trends, sectors like technology, Renewable Energy , electric vehicles (EVs), healthcare, financial services, and new-age tech startups are most likely to dominate the IPO pipeline in 2025, driven by innovation and supportive policies such as the National Green Hydrogen Mission and PLI schemes.
Logistics and Supply Chain, along with Manufacturing, will also see strong activity due to e-commerce growth and infrastructure investments. There has been considerable interest in fundraising via Qualified Institutional Placements (QIPs), with the number jumping from 45 in 2023 to 71 in 2024, after a dip to 14 in 2022. What is driving this trend? The increase in Qualified Institutional Placements (QIPs) in 2024 can be attributed to the enhancement in market conditions, sector diversification as well as supportive corporate strategy.
Such trends were propelled by the initiatives and performances of major industries including Real Estate , Utilities, Automobiles, Metals and PSU Banks. Institutional funds can also be raised at a better pace through QIPs owing to their less stringent regulations and quicker turnaround time without the necessity of a public issuance. This development demonstrates not only increasing equity market appeals but also a reasonably good economy and high volumes of corporate profit.
In particular, more than two-thirds of the QIP issue price is higher than the share issue price as two-thirds of the stocks are above their issue prices signifying positive outlook of the investors and efficiency of the QIPs in providing capital to support growth while also aiding deleveraging. Out of strong domestic performance combined with encouraging global conditions, QIPs ranked among the most successful fundraising strategies in 2024. What key factors have contributed to the strong recovery of the Indian IPO market in 2024? The Indian IPO market saw a remarkable recovery in 2024, with INR 1.
3 trillion raised through 76 IPOs, driven by a combination of favorable macroeconomic conditions, sectoral diversification, and strong investor participation. Diverse sectors like Automobiles, Retail, E-commerce, and Capital Goods led the listings, showcasing broad-based growth and attracting varied investor participation. Improved corporate profitability and attractive valuations fueled high oversubscription levels, while the entry of small and mid-cap companies enhanced market accessibility.
Streamlined regulatory reforms further facilitated quicker listings and transparency, solidifying India’s position as a global investment destination. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel ).
