Rs 1,00,000 crore worth IPOs likely in FY25, shows report
According to the financial services firm, a total of 56 companies have filed their documents with the market regulator Securities and Exchange Board of India (Sebi) targeting to raise Rs 70,000 crore so far.
- Apr 2, 2024,
- Updated Apr 2, 2024 4:15 PM IST
The financial year 2025 will be another stellar year for the IPO market. Indian companies may raise more than Rs 1 lakh crore through initial public offerings in FY25, according to according to a report from Investmentz.com, an investment and trading platform. According to the financial services firm, a total of 56 companies have filed their documents with the market regulator Securities and Exchange Board of India (Sebi) targeting to raise Rs 70,000 crore so far.
At present, as many as 19 companies have secured the regulator’s approval to raise an impressive Rs 25,000 crore, while an additional 37 companies, eyeing a substantial Rs 45,000 crore, and eagerly await regulatory clearance. Notably, among these 56 prospective IPO candidates, 9 are the new-age tech firms, collectively seeking to raise around Rs 21,000 crore.
Mahavir Lunawat, Managing Director, Pantomath Capital Advisors said, “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.”
Investmentz.com believes that the optimism in the IPO market 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. Moreover, the landscape is enriched by the rising tide of financial literacy and the unwavering commitment of institutional investors.
In the financial year 2023-24, a staggering 76 companies tapped into the public markets through mainboard IPOs, raising nearly Rs 62,000 crore--a 19% increase compared to the previous fiscal year.
The average first-day gains stood at 28%. Meanwhile, over 70% or 55 stocks, are still trading above their issue price. The gains can be attributed to several factors. The buoyant secondary markets, the enthusiastic participation of retail investors in IPOs, and the strong flows from institutional investors played a significant role in these gains.
In FY24, the Nifty 50 ended the session with a 29% gain, and the Nifty Smallcap 100 and the Nifty Midcap 100 index gained 70% and 60%, respectively. The BSE IPO Index, a gauge tracking the after-listing performance of newly listed companies, rose 69%. “The rally in the small and midcap segments has also benefited newly listed stocks because most belong to this basket. The overall public equity fundraising, including from FPOs, OFS, and other avenues, increased by 142% to Rs 1.86 lakh crore in FY24 from Rs 76,911 crore in FY23,” Investmentz.com.
The financial year 2025 will be another stellar year for the IPO market. Indian companies may raise more than Rs 1 lakh crore through initial public offerings in FY25, according to according to a report from Investmentz.com, an investment and trading platform. According to the financial services firm, a total of 56 companies have filed their documents with the market regulator Securities and Exchange Board of India (Sebi) targeting to raise Rs 70,000 crore so far.
At present, as many as 19 companies have secured the regulator’s approval to raise an impressive Rs 25,000 crore, while an additional 37 companies, eyeing a substantial Rs 45,000 crore, and eagerly await regulatory clearance. Notably, among these 56 prospective IPO candidates, 9 are the new-age tech firms, collectively seeking to raise around Rs 21,000 crore.
Mahavir Lunawat, Managing Director, Pantomath Capital Advisors said, “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.”
Investmentz.com believes that the optimism in the IPO market 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. Moreover, the landscape is enriched by the rising tide of financial literacy and the unwavering commitment of institutional investors.
In the financial year 2023-24, a staggering 76 companies tapped into the public markets through mainboard IPOs, raising nearly Rs 62,000 crore--a 19% increase compared to the previous fiscal year.
The average first-day gains stood at 28%. Meanwhile, over 70% or 55 stocks, are still trading above their issue price. The gains can be attributed to several factors. The buoyant secondary markets, the enthusiastic participation of retail investors in IPOs, and the strong flows from institutional investors played a significant role in these gains.
In FY24, the Nifty 50 ended the session with a 29% gain, and the Nifty Smallcap 100 and the Nifty Midcap 100 index gained 70% and 60%, respectively. The BSE IPO Index, a gauge tracking the after-listing performance of newly listed companies, rose 69%. “The rally in the small and midcap segments has also benefited newly listed stocks because most belong to this basket. The overall public equity fundraising, including from FPOs, OFS, and other avenues, increased by 142% to Rs 1.86 lakh crore in FY24 from Rs 76,911 crore in FY23,” Investmentz.com.