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IPO fund raise between April-Dec 2024 at Rs 11.1 trn: Economic Survey 2025

Economic Survey 2025: India's share in global IPO listings, meanwhile, surged to 30 per cent in 2024, up from 17 per cent in 2023

IPO

Puneet Wadhwa New Delhi

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Economic Survey 2025: The total resource mobilisation from primary markets (equity and debt) for the nine months of the current fiscal 2024-25 (9M-FY25) – between April till December 2024 – stood at Rs 11.1 trillion, said the Economic Survey 2025.
 
This amount, according to the survey, is 5 per cent more than the entire amount raised via the IPO route in FY24, and amounts to 25.6 per cent of gross fixed capital formation of private and public corporations during FY24.
 
India's share in global IPO listings, meanwhile, surged to 30 per cent in 2024, up from 17 per cent in 2023, making it the leading contributor of primary resource mobilisation globally. 
 
 
The number of IPOs, the Economic Survey 2025 said, increased 32.1 per cent to 259 during April to December 2024 (9M-FY25) from 196 in the corresponding period of the previous year, while the amount raised almost tripled from Rs 53,023 crore to Rs 1.53 trillion in the same period.
 
"The mainboard platform witnessed a significant increase in issue size as the average IPO deal size rose to Rs 2,124 crore, up from Rs 814 crore in the entire FY24. In the case of small and medium enterprises (SMEs) IPOs, the average deal size increased to Rs 39 crore from Rs 31 crore during the same period," the Economic Survey 2025 said. 
Rising investor participation via SIPs
 
Looking ahead, analysts expect 2025 to be another blockbuster year for the primary markets with projections by Pantomath Capital Advisors, a Mumbai-based investment banking company, suggesting that fundraising via this route could surpass Rs 2 trillion mark.
 
"Currently, 100 companies have filed draft offer letters with the Sebi, with many already receiving approval or awaiting clearance. This sets a promising tone for the year, underscoring strong market momentum and investor confidence in the upcoming IPOs," said Mahavir Lunawat, managing director at Pantomath Capital Advisors.
 

Demat accounts

 
The IPO frenzy in 2024 has seen a sharp rise in demat accounts, with the number of such accounts rising 33 per cent to 18.5 crore at the end of December 2024 on a year-on-year (YoY) basis, the Economic Survey 2025 said. There are 11.5 crore unique investors with demat accounts and 5.6 crore unique investors in mutual funds as of the end of December 2024. 
 
"Higher investor participation has engendered a self-reinforcing cycle of strong market returns, bringing in even more investors. This, in turn, will eventually transform the securities market into a more diverse, inclusive, and robust platform for wealth creation," the Economic Survey 2025 said.
 
Qualified Institutional Placement (QIPs), meanwhile, emerged as the preferred equity fundraising mechanism for the corporates during FY25, the survey said, with an 11.4 per cent share in total capital raised.
 
Resource mobilisation through rights issues, too, remained buoyant, with Rs 16,881 crore raised during April to December 2024, compared to Rs 6,538 crore in the corresponding period of the previous year, translating into an increase of around 158 per cent.

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First Published: Jan 31 2025 | 3:18 PM IST

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