At least 100 companies have filed draft offer letters with the markets regulator Securities and Exchange Board of India (SEBI), as 2025 is projected to see fundraising via the primary market surpass Rs 2 lakh crore, according to market watchers.
The Indian IPO market witnessed a landmark year in 2024, with over 90 companies collectively raising a staggering Rs 1.62 lakh crore-more than double the Rs 49,436 crore raised in 2023.
"As we go into 2025, the major market is positioned for further more success and projections expect fundraising to pass Rs 2 lakh crore, say analysts of Pantomath Capital Advisors," said the sources.
Already, 100 companies have drafted offer letters and filed them with SEBI, where many of these have been sanctioned or are still awaiting approval.
"This bodes well for the year and underlines the robust market momentum and investor optimism ahead of the IPOs," the financial services group added.
The macro situation remains decent for India with good growth and balanced payment (BoP) outlook and a fiscal-inflation outlook that appears manageable save for the recent shocking spike.
According to Shripal Shah, MD and CEO, Kotak Securities, India remains one of the world's fastest-growing major economies, making it a compelling investment destination for global investors.
"We see the equity market gaining more momentum and commodities crossing its historic best in 2025. Along with that, an increase among young investors entering the stock market to build wealth early on, will also add to the overall market growth," he noted.
Domestic fundamentals will remain robust but cautious optimism is warranted. Long-term investors should focus on quality assets amid rich valuations.
The monetary policies are now changing direction to ease, and Kotak Securities sees global economies stabilizing as interest rate cuts are expected in the US, Europe, and Asia.
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