Fundraise via IPOs to hit US$ 12 billion (Rs. 1 trillion) mark in FY25: Report
- IBEF
- April 4, 2024
Fundraising through the initial public offer (IPO) route is anticipated to witness a substantial uptick in FY25 potentially reaching US$ 12 billion (Rs. 1 trillion), as per Pantomath Group's recent note. In FY24, 76 companies accessed the mainboard IPOs, raising around US$ 7.5 billion (Rs. 62,862 crore), a notable 21% increase compared to FY23. Despite stagnant domestic sales, the average first-day gains for debut stocks stood at 28%, with over 70% still trading above their issue price.
The buoyancy in secondary markets is driving companies to capitalize on primary markets for funds, with deferred IPO plans now being pursued. Managing Director at Pantomath Capital Advisors, Mr. Mahavir Lunawat, predicts a substantial IPO equity raise in FY25, potentially exceeding US$ 12 billion (Rs. 1 trillion). Among the 56 companies filing offer documents with the Securities and Exchange Board of India (SEBI), nine are new-age tech firms seeking to collectively raise approximately US$ 2.5 billion (Rs. 21,000 crore). The rally in mid-and small-cap segments in FY24 and significant increases in overall public equity fundraising further underscores the growing confidence in Indian markets.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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