India's Numbers Bigger Than US, Europe, UK Combined In This Domain - Details

2024 marked a milestone year for Indian equity markets, with IPOs witnessing a 2.6x surge compared to 2023. According to Motilal Oswal Financial Services (MOSL), over 317 IPOs collectively raised a record  Rs1.8 trillion, surpassing the previous high of  Rs1.3 trillion in 2021.

"MOSL attributed this phenomenal growth to the evolving nature of Indian equities and robust fund inflows, which are reshaping the capital market and attracting diverse investors." the report noted.

Nifty 50 and Market Sentiment

The Nifty 50 index crossed the 26,000 mark in September 2024, showing a 12% year-to-date gain. While this performance lagged behind the 20% rise seen in 2023, it reinforced strong market fundamentals. 
"The Nifty 50 index crossing the 26,000 mark boosted investor confidence despite delivering a more modest year-to-date gain.", the report noted.

Performance of New IPOs

New listings contributed 2.9% to market capitalization in 2024, up from 1.4% in 2023, though still below the highs of CY17 (+3.7%) and CY21 (+3.4%). Among the 78 mainboard IPOs, 69% are trading above their issue prices, with notable performances like Premier Energies (+194%) and Bharti Hexacom (+155%).

 "Among the 78 mainboard IPOs that hit the stock market this year, 11 are trading over 100% above their issue prices."
SME IPOs significantly outshone their mainboard counterparts. "SME IPOs outshone mainboard IPOs, with 28 of 231 SME IPOs listing at premiums exceeding 100%."

Sectoral Trends

Secto Rssuch as Consumer Durables (+77%), Logistics (+57%), and Capital Goods (+51%) led the gains, while Oil & Gas (-29%) and NBFCs (-17%) lagged. Capital raised was distributed among large-cap ( Rs601 billion), mid-cap ( Rs490 billion), and small-cap ( Rs666 billion) IPOs. 

"Capital Goods, NBFCs, Healthcare, Retail, E-Commerce, and Metals attracted significant subscriptions against their offer sizes, signalling robust investor demand." the report noted.

Record-Breaking Fundraising
2024 witnessed India’s largest IPO, with Hyundai Motor raising  Rs278.6 billion, surpassing LIC’s  Rs205.6 billion in 2022. "Among main-board issues, the year marked the largest IPO in India, with Hyundai Motor issuing shares worth  Rs278.6 billion in October 2024."

Additionally, Vodafone Idea launched the largest FPO ever, raising  Rs180 billion. Together with Hyundai Motor, Swiggy, NTPC Green, and Vishal Mega Mart, these companies accounted for 43% of the total funds raised.

Oversubscription Highlights

Oversubscription rates reached 26.6 times the offer size, amounting to   Rs46.7 trillion. "This ratio is the second highest in the decade, trailing only the high attained in CY23 (29.9%).

“ SME IPOs achieved a remarkable 165.3x oversubscription, significantly outperforming mainboard IPOs at 18.9x.”, as per the report.

India’s Global IPO Ranking

For the first time, India ranked first globally in IPO volume in 2024, outpacing the US and Europe.

"India listed almost twice as many IPOs as the US and more than two-and-a-half times as many as Europe." the report noted. 
The year stands as a testament to India’s growing prominence in the global equity markets and robust investor confidence.