Buoyant secondary markets, strong participation of retail investors, and robust flows from institutional investors helped 76 companies in raising nearly Rs 62,000 crore through mainboard IPOs in 2023-24, marking a 19 per cent surge from the previous fiscal year.
With FY2025 on the horizon, expectations are high for yet another stellar year for IPOs (Initial Public Offerings). This optimism is fuelled by a confluence of factors, including the surge in domestic capital, enhanced governance practices, the vibrant spirit of Indian entrepreneurship, and favourable government policies bolstered by FDI support, Pantomath Financial Services Group, said in its report.
“With a diverse array of offerings and a fervent appetite for growth capital, the IPO landscape in FY2025 promises to be dynamic and vibrant, offering exciting opportunities for investors and companies alike. We anticipate that equity-raise through IPOs in FY25 could exceed Rs 1 lakh crore. This figure could potentially increase even further if there are no global shocks affecting the Indian market,” Mahavir Lunawat, Managing Director, at Pantomath Capital Advisors, said.
According to the report, a total of 76 companies garnered close to Rs 62,000 crore through main-board IPOs in 2023-24, which was way higher than Rs 52,115 crore mopped up by 37 companies in the preceding fiscal.
Interestingly, companies from multiple sectors tapped the IPO market in FY24. However, the traditionally dominant financial sector, demonstrated restrained activity, raising Rs 9,655 crore, which accounted for less than a fifth of the total capital raised in FY24, in comparison to 51 per cent in 2022-23.
Further, new-age technology companies were also few, with just three IPOs of Yatra, Mamaearth, and Zaggle hitting the market in the last fiscal.
