Historic Fundraise! Indian Companies Raised Rs 3.5 Lakh Crore Via Equity In 2024 | Roundup 2024

Historic Equity Fundraise: In a strong year for the Indian equity markets, companies raised a record-breaking Rs 3.5 lakh crore ($41 billion) through 438 issuances, marking the largest equity raise in the nation’s history, according to a Nuvama report. The unprecedented record hints towards the buoyancy of the domestic markets, led by strong investor confidence and favourable macroeconomic conditions.

Bull Market Boosts Equity Valuations

According to Nuvama, the ongoing bull market has played a key role in enabling Indian firms to access capital at higher equity valuations. Companies have capitalised on this opportunity to deleverage their balance sheets, aligning their strategies with strong market dynamics. The rise in equity fundraising is further supported by record-high inflows from domestic institutional investors (DIIs), primarily mutual funds, which have provided new avenues for capital allocation.

The small and medium enterprise (SME) segment has emerged as a standout performer in raising fresh capital from equity markets. From 109 issues in 2022, the number of SME issuances surged to 235 in the calender year 2024 (CY24). The amount raised by this segment recorded a notable jump from Rs 1,900 crore to over Rs 8,600 crore. 

IPO Market Shines Bright

The international brokerage firm hints that the Initial public offerings (IPOs) remained a cornerstone of equity fundraising, with Rs 1,62,800 crore ($19.5 billion) raised in CY24. These IPOs delivered a weighted average listing premium of 31 per cent, marking strong investor demand. Telecom and capital goods IPOs led the way, delivering extraordinary average listing gains of 123 per cent and 110 per cent, respectively.

QIPs Hit Five-Year Highs

Qualified institutional placements (QIPs) raised Rs 1,13,100 crore ($13.5 billion) this year, the highest in five years. Major companies such as Vedanta and Zomato were among the top contributors, leveraging the market’s favourable conditions to secure significant capital inflows.

Resilient Growth Across Segments

According to Nuvama, the year’s achievements underline the resilience and adaptability of Indian firms in tapping diverse capital-raising avenues. The surge in both IPOs and QIPs signals a robust appetite of institutional and retail investors alike. 

The influx of funds is expected to fuel further growth and innovation across industries, cementing India’s position as a burgeoning hub for equity investment, the brokerage report noted.