IPO mop up could top Rs 2 trillion in 2025: ibanking firm Pantomath

According to Pantomath, funds raised through IPOs in India this year rank second-highest globally after the United States

Fund mobilisation through initial public offerings (IPO) will continue to rise in 2025 and the total amount is expected to breach the Rs 2 trillion mark, investment banking firm Pantomath Group estimates. If the projection becomes true, it will be the highest-ever IPO mop up during a calendar year. 

 

This year is set to end with a record mop up of Rs 1.6 trillion by 92 mainboard IPOs, surpassing 2021’s tally of Rs 1.19 trillion. Hyundai Motor India’s Rs 27,870 IPO was the show stealer this year, next to food delivery major Swiggy’s Rs 11,327-crore offering.

 

“Multinational corporations have demonstrated the strategic advantages of listing in India. Factors such as reduced capital costs, wide consumer market, robust regulatory regime, encourage global players to consider Indian markets for their equity offerings. Increasing participation of multinational corporations on Indian exchanges adds a new dimension to the Indian capital market,” said Mahavir Lunawat, Managing Director, Pantomath Capital.

 

According to Prime Database, 65 companies looking to raise an estimated Rs 1.23 trillion are currently awaiting Sebi nod for IPO. Meanwhile, 14 companies looking to raise over Rs 33,000 crore are already setting on Sebi nod to launch their IPOs. 

  Also Read: IPO performance 2024: 91 public offerings raise Rs 1.59 trillion this year

 

Some of the marquee companies that are currently awaiting Sebi nod for IPOs are consumer appliance major LG Electronics India, IT firm Hexaware Technologies, mortgage lender HDB Financial Services and electric two-wheeler firm Ather Energy. The IPO of these companies could fructify during the first half of next calendar year.

 

According to Pantomath, the funds raised by IPOs this year in the domestic market are the second-highest globally after the US. In terms of number of deals, India tops the global chart.

 

“India achieved a historic milestone by securing the top position globally in terms of IPO volume for the first time, surpassing both the US and Europe, with nearly double the number of IPOs listed compared to the US and two-and-a-half times more than Europe. In contrast, the US reclaimed the lead in IPO proceeds for the first time since the peak in 2021, reinforcing its status as the most vibrant and appealing market for global investors. Meanwhile, tighter regulations in mainland China resulted in the weakest IPO performance in a decade in that region,” said Pantomath in a note.