• India's economic growth is being propelled by a surge in Initial Public Offerings (IPOs), with record-breaking fundraising expected in 2025.
• The resilience of India's capital markets and investor confidence play a critical role in this growth, with sectors like real estate, utilities, and automobiles dominating.
• The growth in India's IPO market is expected to continue, with fundraising projected to cross Rs 2 lakh crore in 2025.
• India's robust regulatory regime, wide consumer market, and reduced capital costs are attracting global players, positioning India as a global economic powerhouse.

India is on the brink of an economic revolution, with a projected GDP target of $7 trillion by 2030, positioning it as the world's third-largest economy. This economic surge is being propelled by a significant increase in Initial Public Offerings (IPOs), with the country expected to witness record-breaking IPO fundraising in 2025, exceeding Rs 2 lakh crore. This projection is based on a report by Pantomath Group, a leading financial services conglomerate, which underscored India's emergence as a global leader in IPO volume. In 2024 alone, India hosted twice as many IPOs as the US and 2.5 times more than Europe.

India's Capital Market Resilience

The report also highlighted the resilience of India's capital markets, the confidence of investors, and the critical role IPOs play in fueling economic growth. In 2024, 76 companies raised Rs. 1.3 trillion in the first 11 months, driven by favorable regulatory reforms and investor confidence. The year was dominated by sectors such as real estate, utilities, automobiles, metals, and PSU banks, which collectively accounted for 57% of the total Qualified Institutional Placements (QIPs) issuances.

The surge in QIPs in 2024, with 91 deals raising a record Rs 1,29,200 crore, surpassed the previous peak of Rs 80,500 crore in 2020, marking an all-time high. This milestone is a testament to the strategic advantages of listing in India, such as reduced capital costs, a wide consumer market, and a robust regulatory regime, which encourage global players to consider Indian markets for their equity offerings.

The Future of India's IPO Market

The growth in India's IPO market is expected to continue through 2025, with fundraising expected to cross Rs 2 lakh crore. This projection is based on the fact that around 34 companies have already received approval from the Securities and Exchange Board of India (SEBI) to raise Rs 41,462 crore, while 55 others await clearance for Rs 98,672 crore.

The growth of the IPO market is not just confined to India. Globally, banks are paying huge sums to attract technology talent in fields such as machine learning and generative AI. Compliance and remediation costs also remain elevated, with new regulations such as open banking, Basel III Endgame, and debit card swipe fees coming into effect in 2025.