India is set to become the world's third-largest economy by 2027 with a $7 trillion GDP target by 2030, a report said on Thursday, predicting record-breaking IPO fundraising in the country next year, crossing Rs 2 lakh crore.
According to the report by Pantomath Group, a leading financial services conglomerate, India hosted twice as many IPOs as the US and 2.5 times more than Europe this year, as the country emerged as the leader in IPO volume globally.
Mahavir Lunawat, Managing Director at Pantomath Capital observed : With all market momentum sustained, we forecast for the year 2025 that equity raised through Initial Public Offering/ issue amount will exceed Rs 2 lakh crore. This speaks to the resilience of capital markets and the confidence of investors but also speaks to the more salience role of IPOs that fuel economic growth.
The report outlined stellar economic growth, sectoral advancements, and IPO market dominance, positioning the country as a global economic powerhouse.
In the country, 76 companies raised Rs. 1.3 trillion in the first 11 months of 2024, as favourable regulatory reforms and investor confidence fuelled market momentum, even during downturns.
Qualified institutional placements (QIPs) have picked up strongly in 2024 with 91 transactions raising a record Rs 1,29,200 cr, above last year's Rs 52,300 cr, and the prior peak of Rs 80,500 cr raised in the calendar year 2020 which is the highest ever.
Multinational corporations have shown the strategic benefits of listing in India. Factors such as lower capital costs, vast consumer market, and a strong regulatory regime make global players consider Indian markets for their equity offerings," Lunawat noted.
The real estate, utilities, automobiles, metals, and PSU bank sectors have dominated the year so far, combining for 57 per cent of all QIP issuances. Of the 91 issues, six have provided returns above 100 per cent on their issue price. According to the report, over two-thirds of the stocks have delivered positive returns against their issue prices.
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