Fiscal year 2024–2025 is expected to be another extraordinary year for the primary market. Initial public offerings (IPOs) are expected to generate a lot of attention on D-Street for the third year running, with 56 businesses planning to raise ₹70,000 crore, or $8.4 billion, in FY25. Furthermore, 19 businesses have already received permission from the Securities and Exchange Board of India (SEBI) to raise a sizeable ₹25,000 crore.
Among the most anticipated initial public offerings (IPOs) in FY25 are Bharti Hexacom, Go Digit Insurance, Swiggy, Ola Electric, Waaree Energies, and Brainbees Solutions.
“In FY2024-25, the IPO market is poised for another exceptional year, driven by increased domestic capital, improved governance, thriving Indian entrepreneurship, favourable government policies supporting FDI, rising financial literacy, and diligent institutional investors. Many IPOs are in the pipeline, reflecting the robust support of the Indian economy. With diverse offerings and a strong appetite for capital growth, the IPO landscape in FY2024-25 promises to be dynamic and vibrant, offering exciting opportunities for investors and companies,” Mahavir Lunawat, Managing Director at Pantomath Capital Advisors Private Limited mentioned in conversation with Livemint.
“This current market condition has created an enormous opportunity for inclusive growth and capital availability to a broader spectrum of enterprises and ecosystems. We anticipate that equity raised through IPOs in FY25 will exceed ₹1 lakh crore. This figure could increase even further if no global shocks affect the Indian market,” he added.
“With favourable conditions in place, we can anticipate healthy investor engagement. The willingness of many large companies to raise capital after deferring their IPO plans also signals good participation from investors in terms of IPO subscriptions in FY25,” Lunawat mentioned.
IPO market estimated status before general elections
“These results are a positive indicator, creating a sentiment that the ruling government might return to power in the upcoming Lok Sabha election in 2024. This outcome instils confidence in both domestic and global investors, encouraging long-term investments in the Indian equity markets, given the anticipated continuity of policies and reforms,” the MD of Pantomath Capital Advisors stated.
The evaluation of the present state of IPO exuberance encompasses various aspects such as the situation of the market, investor emotion, corporate performance, regulatory framework, and past patterns.
“While concerns about unsustainable levels of exuberance exist, there are opportunities for further growth, especially in sectors with strong prospects and innovative models. As per our analysis, whether from the perspective of demand or from investible funds perspective or from inclusivity point of view, India would be in dire need of 2.5 lac crores of equity capitalisation each year,” Lunawat wrapped up.
