India Set for Another Record-Breaking Year of IPOs in 2025

India Poised for Another Record Year of IPOs in 2025

Driven by strong fundamentals and a resilient economy, Indian equity markets are set for another milestone year in initial public offerings (IPOs), according to recent reports. Fundraising activity has been robust across diverse sectors, bolstered by domestic investments that provide stability amid global geopolitical risks and market volatility, a report by Kotak Investment Banking highlights.

Rising Deal Sizes and MNC Interest

Kotak’s report reveals a consistent increase in deal sizes across financial products. More than 30 deals last year crossed the $500 million mark, reflecting growing confidence in the Indian stock market. Multinational companies (MNCs) are increasingly choosing India for listing their subsidiaries, underlining the market’s appeal.

In 2024, 91 companies collectively raised nearly ₹1.60 lakh crore through IPOs, contributing to a total equity market fundraising of over ₹3.73 lakh crore, which also includes follow-on public offers (FPOs) and qualified institutional placements (QIPs).

Mega IPOs from Global Giants

After Hyundai’s record-breaking $3.3 billion IPO in 2024, LG Electronics is now tapping into India’s stock market potential. The South Korean electronics giant filed its draft red herring prospectus (DRHP) in December, aiming to raise ₹10,000 crore (approximately $1.3 billion) through the IPO of its Indian unit, LG Electronics India Ltd. The offering, scheduled for April or May 2025, is set to further strengthen India’s position as a preferred IPO destination.

Market Momentum and Performance

Despite volatility in 2024, Indian markets posted stellar performances. The Nifty soared past 26,250, and the BSE Sensex surpassed 85,900 in September, recording gains of around 21% in the first nine months of the year. Over 90 companies have already filed DRHPs with SEBI, indicating strong momentum for IPO activity in 2025.

Positive Macroeconomic Indicators

India’s macroeconomic outlook remains favorable, driven by solid growth, a stable balance of payments (BoP) scenario, and manageable fiscal and inflation levels. According to Kotak Securities, banks reported better-than-expected net interest margins (NIMs) and lower credit costs, while the IT services sector witnessed a stronger-than-anticipated revenue recovery.

A Promising Year for Indian Equity Markets

As India continues to attract multinational corporations and record-breaking IPOs, 2025 is shaping up to be another landmark year for its stock market. With a growing pipeline of public offerings, increasing deal sizes, and a resilient economy, the Indian finance landscape is set to thrive.