Markets
The Great Haul, IPO Run To Gallop In 2025 As 80+ Companies Await SEBI Nod
India’s capital markets are set for another record-breaking year in 2025, with over 90 companies having filed their draft red herring prospectus (DRHP) with the SEBI.
If the excitement is to be believed, India’s capital markets are set for another record-breaking year in 2025, with over 90 companies having filed their draft red herring prospectus (DRHP) with the SEBI, Securities and Exchange Board of India.
These firms aim to raise an estimated ₹1 trillion ($11.65 billion) through initial public offerings (IPOs) in the coming months. With 28 companies already in the pipeline, the stage is set for a robust IPO season that underscores investor confidence in India’s economic growth trajectory.
A Buoyant M&A Scenario Fuels Market Optimism
Adding to the momentum, India’s mergers and acquisitions (M&A) activity saw a significant uptick in 2024, with deal values surging 38% year-over-year to $109 billion, up from $79 billion in 2023. Domestic corporates played a pivotal role, contributing $48 billion in deals—nearly double the $26 billion recorded last year. Key transactions included – Viacom and Disney merger, Aster DM’s acquisition of Quality Care and Bharti Group’s stake acquisition in BT Group
Indian conglomerates are increasingly driving M&A activity, focusing on diversification and strategic growth across sectors. For instance, the Adani Group spearheaded acquisitions in industrials and infrastructure, while the Birla Group and Reliance Industries focused on industrials and the TMT (Technology, Media, and Telecom) sector, respectively.
Equity Capital Markets Shine Bright
The equity capital markets in India hit a new high in 2024, with fundraising totaling $74 billion. This includes IPOs and follow-on public offerings (FPOs) worth $22 billion, ₹20 billion raised via qualified institutional placements (QIPs), and $32 billion generated through block deals. The sell-down activity was driven by multinational corporations (MNCs), Indian promoters, and private equity (PE) investors, each contributing nearly equal proportions.
MNCs, in particular, have shown a growing preference for the Indian public markets, monetizing holdings worth $10 billion in 2024—up from $3 billion in 2023. Hyundai Motor India’s blockbuster IPO exemplifies this trend. Valued at $3.3 billion, it stands as India’s largest IPO to date. Despite listing at a slight discount to its issue price, Hyundai’s shares have cemented investor confidence in the Indian market.
The Hyundai IPO, India’s largest to date, debuted on the stock exchanges in October 2024 at ₹1,931 per share—a 1.5% discount to its issue price of ₹1,960. While the stock currently trades at ₹1,786 on the BSE, the IPO’s success has inspired multiple multinational corporations (MNCs) to explore listing opportunities in India.
At the same time, Private equity investors also played a critical role in India’s M&A market, with deals worth $30 billion in 2024. Buyouts accounted for over one-third of the total PE deal value, reflecting the growing appetite for larger transactions. Notably, deals worth $100 million or more constituted 65% of the total PE activity over the past five years, signaling a shift towards high-value investments.
Exits by PE sponsors were driven by IPOs, secondary sales, and strategic sales, with seven or eight sponsor-backed companies going public in 2024. This reflects the increasing conviction among sponsors in India’s ability to deliver robust valuations both in public listings and secondary markets.
Key sectors for buyouts in 2024 included:
- Telecom: 24% of transactions
- Pharma and Healthcare: 19%
- Enterprise Tech, IT Services, and SaaS: 18%
- Infrastructure and Energy: 14%
Minority transactions were led by:
- Consumer Tech: 30%
- Financial Services: 26%
- Infrastructure and Energy: 14%
- Enterprise Tech: 12%
IPO Pipeline For 2025, A Historic Year Ahead?
The IPO frenzy is set to accelerate in 2025, with 28 companies targeting ₹46,000 crore in funding, while over 80 additional firms await SEBI approval to raise ₹1.32 lakh crore. This strong pipeline signals continued investor appetite for equity capital markets in India.
Before, we look into what 2025 holds for IPOs, let us take a quick look at 2024, which was a record year for IPOs and QIPs, some of the notable benchmarks include –
SME IPOs: Collectively raised ₹8,761 crore, an 87% increase over 2023. The average SME issue size surged sixfold to ₹36 crore, with retail participation growing to 1.88 lakh applications, up from just 297 in 2020.
Qualified Institutional Placements (QIPs): Mobilization tripled, with 99 companies raising ₹1.38 lakh crore. Zomato and Vedantu led the charge, raising ₹8,500 crore each.
Mainboard IPOs: 91 companies raised ₹1.6 lakh crore, a threefold increase from ₹49,436 crore raised by 57 IPOs in 2023.
The year also saw fresh capital mobilization of ₹64,499 crore through public issues, accounting for 40% of total funds raised.
Retail Investors and Oversubscription Trends
Retail investor enthusiasm reached higher than high levels in 2024, with bids worth ₹3.4 lakh crore—113% higher than total IPO mobilization. A staggering 66 out of 91 IPOs were oversubscribed more than 10 times, with an average oversubscription of 45.39x. Retail oversubscription alone stood at 34.15x, far exceeding 2023 levels.
New-Gen companies tool center stage, companies like Swiggy, Mobikwik, Firstcry, and Awfis made their public debut in 2024, indicating the increasing dominance of new-generation firms in India’s capital markets.
IPO Pipeline, 2025.
With a $35 billion IPO pipeline for 2025, the momentum in capital markets shows no signs of slowing. MNCs are increasingly choosing India as a listing destination for their subsidiaries, further reinforcing the country’s appeal as a global financial hub.
As companies gear up to ride the IPO wave, 2025 could set new benchmarks in capital raising, solidifying India’s position as a preferred market for both domestic and international investors.
Data by the Prime Database showed further that as of January 9, 65 out of 91 IPOs in 2024 were trading above their issue price, with the overall average gain from these 91 issues exceeding 44%.
To top it off, many as 20 new-age companies are expected to launch their IPOs in 2025 including Zepto, PhysicsWallah, Cardekho, Ecom Express, BoAt, Ather Energy and Avanse Financial Services.
The combined strength of a thriving M&A ecosystem, increasing private equity activity, and a robust IPO pipeline positions India for an extraordinary year in 2025. As the market gallops ahead, all eyes will be on how businesses and investors capitalize on this growth story.
