The National Stock Exchange (NSE) of India has achieved a significant milestone by raising Rs 1.67 lakh crore ($19.5 billion) through 268 Initial Public Offerings (IPOs) in 2024. This accomplishment not only highlights the robustness of the Indian economy but also the growing confidence of investors in the country's capital markets. The 268 IPOs, which include both mainboard (90) and SME (178) listings, have raised a staggering Rs 1.67 lakh crore, marking the highest number of IPOs within Asia. This figure also represents the highest number of public issues ever recorded in India.

IPO Boom and Global Comparisons

Among these, the IPO of Hyundai Motor India Ltd (HMIL) stands out as the largest in India and the second largest globally, raising $3.3 billion. The mainboard companies, excluding REiTS, InVITS, and FPOs, raised over Rs 1.59 lakh crore, while 178 SMEs collectively raised around Rs 7,349 crore. Sriram Krishnan, Chief Business Development Officer (CBDO), NSE, highlighted that the record number of IPOs in 2024 underscores the resilience and potential of the Indian economy. He noted that companies across various sectors are recognizing the value of public markets to support their growth strategies.

Interestingly, the NSE has outperformed other top exchanges in Asia, including Japan 's (Japan Exchange Group), Hong Kong's (Hong Kong Stock Exchange), and China 's (Shanghai Stock Exchange) in terms of the number of IPOs. The capital raised by companies via the New York Stock Exchange (NYSE) was $15.9 billion, and the Shanghai Stock Exchange was $8.8 billion, both falling short of the NSE's achievement.

Regulatory Reforms and Economic Factors

In 2024, a total of 1,145 IPOs were raised globally, a slight decrease from the 1,271 IPOs in the previous year. However, the Indian market's performance has been exceptional, with the NSE leading the pack. The Securities and Exchange Board of India (SEBI) has played a crucial role in this success by streamlining services like escrow and IPO accounts and tightening registration requirements for intermediaries. The integration of AI and machine learning has accelerated IPO clearance processes, reducing approval timelines from 75 days to under 45 days in some cases.

The Indian stock market's performance has been influenced by various factors, including the US Fed's aggressive rate cut and the Chinese central bank's rate cut. These measures have positively influenced global investor sentiment, resulting in gains for domestic metal stocks. The Indian economy has shown steady growth, with a GDP growth of 6.5% to 7%, boosted by capital formation growth. Gross Fixed Capital Formation increased by 9% in real terms in 2023-24. The fiscal balances of the general government have improved progressively despite expansionary public investment.

The record-breaking performance of the NSE in 2024 is a testament to the strength and resilience of the Indian economy. It also highlights the growing confidence of investors in the country's capital markets. With the right regulatory environment and continued economic growth, the Indian stock market is poised for even greater heights in the future. This achievement is a clear indication of the potential of the Indian economy and the confidence of investors in the country's capital markets. It also underscores the effectiveness of regulatory reforms and the positive impact of global economic factors on the Indian stock market.