MUMBAI: Fund raising by Indian corporates through equity and debt reached all-time highs in financial year 2024-25, according to primedatabase.com, a prominent database provider on the primary capital market.
Public equity fundraising surged to an all-time high of Rs 3,71,460 crore, reflecting a 92 percent increase from Rs 1,90,104 crore in FY24. Factoring in rights issues, which contributed another Rs 16,167 crore, the total equity fundraising stood at Rs 3.88 lakh crore.
The year also witnessed a record-breaking IPO market, with 78 Indian corporates raising Rs 1,62,387 crore through main board IPOs, more than 2.5 times the Rs 61,922 crore raised by 76 IPOs in the previous fiscal. The largest IPO of the year came from Hyundai Motor, raising Rs 27,859 crore, followed by Swiggy (Rs 11,327 crore) and NTPC Green Energy (Rs 10,000 crore). On the other end of the spectrum, Kronox Lab Sciences had the smallest IPO at just Rs 130 crore.
Pranav Haldea, Managing Director of PRIME Database Group, remarked, “The IPO market has seen a phenomenal resurgence, with record-breaking fundraising and an influx of retail investors. This underscores the confidence in India’s growth story and the robustness of our capital markets.”
Fundraising through debt instruments also touched a historic high, hitting Rs 11,12,375 crore. Of this, Rs 11,04,331 crore was raised through private placements, while Rs 8,044 crore came from public bond issuances.
After two relatively subdued years, new-age technology companies (NATCs) also made a strong comeback, with eight major IPOs—including Awfis, Blackbuck, Digit Insurance, Firstcry, Ixigo, Mobikwik, Swiggy, and Unicommerce, coming together to raise a total of Rs 21,438 crore. This marked a significant rebound from Rs 3,040 crore in FY23 and Rs 5,544 crore in FY22.
Retail participation in IPOs saw a significant jump, with an average of 21.33 lakh applications per issue, up from 13.15 lakh last year. The highest retail engagement was recorded by IPOs of Waaree Energies (70.13 lakh applications), followed by Bajaj Housing Finance (58.66 lakh) and KRN Heat Exchanger & Refrigeration (55.23 lakh).
Despite this enthusiasm, the allocation to retail investors remained relatively low at Rs 40,471 crore, representing 25 percent of total IPO mobilization (down from 27 percent last year). The total value of shares applied for by retail investors stood at Rs 3.29 lakh crore, a 103 percent premium over the total IPO fundraising.
Investor sentiment was buoyed by strong listing gains, with an average 30 percent gain on IPO listing days, slightly higher than 29 percent in FY24. Among the biggest winners, Mamata Machinery delivered an astounding 159 percent gain, followed by Bajaj Housing Finance (136 percent) and KRN Heat Exchanger & Refrigeration (117 percent).
Moreover, of the 78 IPOs, 46 continue to trade above their issue price, with the average return standing at 15 percent, despite market corrections in the latter half of the year. The broader IPO market has yielded 300 percent, 257 percent, 71 percent, 75 percent, and 42 percent returns in the last five fiscal years, respectively, dispelling concerns that IPOs are consistently overpriced.
Pranav Haldea stated, “The notion that IPOs are always overpriced and do not yield long-term returns is clearly a myth. The past few years have demonstrated that IPOs can be a lucrative investment opportunity, provided investors make informed choices.”
Anchor investors collectively subscribed to 35 percent of the total public issue amount, with Foreign Portfolio Investors (FPIs) playing a more dominant role than domestic mutual funds, subscribing to 16 percent of the issue amount, compared to 13 percent by mutual funds. Overall, FPIs accounted for 32 percent of total IPO investments, while mutual funds comprised 22 percent.
In a contrasting trend, FPIs injected Rs 1.21 lakh crore into the primary market while offloading Rs 2.64 lakh crore in the secondary market.
The IPO pipeline for FY26 remains robust, with 49 companies approved by SEBI seeking to raise Rs 84,000 crore, while another 67 companies await SEBI approval for Rs 1,02,000 crore in fundraising. However, only four of these 116 companies are new-age tech firms, reflecting a shift in market dynamics.
Despite the strong pipeline, market volatility has led to a more cautious approach among issuers. March 2025 saw no main board IPOs launched, marking the first such instance since May 2023. Several companies have chosen to let their SEBI approvals lapse rather than risk launching in an uncertain market.
Haldea explained, “An IPO is often a once-in-a-lifetime event for a company. Given recent market fluctuations, issuers are in a wait-and-watch mode. They would rather delay their entry into the market than risk a lackluster response.”
With a strong IPO pipeline and sustained investor enthusiasm, the coming fiscal year could bring further record-breaking fundraising, albeit market conditions remain favorable.
Source: The Financial Express
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