India pips US in global IPOs

Highlights

Secures 36% of global IPO listings as against USA’s 13% in Q3/2024, India raised $4.285 bn through 27 main market IPOs, up 115% from Q2

Mumbai: India dominated the global IPO landscape with 36 per cent share of total listings in the third quarter of 2024, outpacing the US at 13 per cent share, a report showed on Tuesday. The market’s stellar performance is further demonstrated by IPO returns of 65.3 per cent year-to-date, substantially outperforming the BSE Sensex’s 14.9 per cent return, according to the report by EY India.

In the third quarter of 2024, the Indian main market saw 27 IPOs, compared to 13 in the last quarter. The proceeds raised through the main markets in Q3 2024 were $4.285 billion, compared to $1.992 billion in Q2 2024.This represents an increase of 115 per cent in proceeds raised with 108% increase in the number of deals.

Additionally, the SME segment raised $398 million via 84 IPOs during Q3 2024, while the corresponding figures for Q2 2023 were $208 million via 60 IPOs.This shows that the Indian stock exchanges have achieved their highest quarterly listings in two decades, reinforcing their position as the global leader in IPO activity.

“The remarkable momentum in India’s IPO market reflects the increasing maturity of our capital markets and growing investor confidence. As we continue to see strong participation from both domestic and international investors, India is cementing its position as a preferred destination for companies seeking to go public,” said Prashant Singhal, India Markets Leader, EY India.

Consumer retail products, diversified industrial products, real estate, hospitality and construction sectors continue to lead IPO activity across main and SME markets. The favourable macro environment has created strong tailwinds for IPO activity, with interest rates expected to moderate to 6.2 per cent by 2025 and inflation projected to ease to 4.5 per cent. Looking ahead, the surge in filings, coupled with robust secondary market performance, indicates sustained momentum in India’s IPO market.