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This is an archive article published on March 27, 2025
Indian companies’ fundraising via IPOs, debt soars to new high in FY25, despite market volatility
The largest IPO in this fiscal was from carmaker Hyundai Motor (Rs 27,859 crore), followed by food delivery aggregation and quick commerce app operator Swiggy (Rs 11,327 crore) and NTPC Green Energy (Rs 10,000 crore).
Activity in the SME IPO segment also saw a huge increase in 2024-25, with 235 SME IPOs collecting around Rs 9,133 crore, 53 per cent higher than Rs 5,971 crore from 204 IPOs last year. (Credit: Pexels)
Fundraising by Indian corporates touched a record high in fiscal 2024-25, with Rs 3.71 lakh crore being raised through the equity route and Rs 11.12 lakh crore from the debt market.
During the ongoing financial year, fund mobilisation through public equity increased by 92 per cent to Rs 3,71,460 crore, compared to Rs 1,90,104 crore in the year-ago period, according to Prime Database.
“If rights issues of Rs 16,167 crore (including of Infrastructure investment trust (InvIT)/ Real estate investment trusts (ReITs) were to be added, the overall equity fund raising nearly touched Rs 3.88 lakh crore in 2024-25,” said Pranav Haldea, managing director, PRIME Database Group.
Fundraising through debt also reached an all-time high of Rs 11,12,375 crore (including of InvITs/ReITs). Out of this, Rs 11,04,331 crore was raised via private placement of debt and Rs 8,044 crore through public bonds.
How India’s IPO market performed this fiscal
In FY25, 78 Indian corporates raised record funding worth Rs 1.62 lakh crore through main-board initial public offerings (IPOs) in FY25, over 2.5 times of the Rs 61,922 crore mobilised by 76 IPOs in FY24.
The largest IPO in this fiscal was from carmaker Hyundai Motor (Rs 27,859 crore), followed by food delivery aggregation and quick commerce app operator Swiggy (Rs 11,327 crore) and NTPC Green Energy (Rs 10,000 crore).
In FY25, new age technology companies (NATCs) made a comeback after two relatively quiet years, with eight IPOs (Awfis, BlackBuck, Digit Insurance, FirstCry, Ixigo, MobiKwik, Swiggy and Unicommerce) raising Rs 21,438 crore.
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Of the 78 IPOs, 56 received a mega response of more than 10 times while seven IPOs were oversubscribed by more than three times.
The average number of IPO applications from retail rose to 21.33 lakh in FY25, compared to 13.15 lakh last year. The highest number of applications from the retail segment were received by Waaree Energies (70.13 lakh) followed by Bajaj Housing Finance (58.66 lakh) and KRN Heat Exchanger & Refrigeration (55.23 lakh).
“IPO response was further buoyed by strong listing performance. Average listing gain (based on closing price on listing date) increased slightly to 30 per cent, in comparison to 29 per cent in 2023-24,” Haldea said.
Out of the 78 IPOs, 46 continue to trade above the issue price. In fact, the average return of the 78 IPOs of 2024-25 has been 15 per cent, despite the market correction in the second half of the year.
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Activity in the SME IPO segment also saw a huge increase in 2024-25, with 235 SME IPOs collecting around Rs 9,133 crore, 53 per cent higher than Rs 5,971 crore from 204 IPOs last year.
The largest SME IPO was of Danish Power (Rs 188 crore). The average issue amount has seen a four-fold jump in four years from just Rs 9 crore in FY21 to Rs 39 crore in FY25.
Haldea said the IPO pipeline for FY26 continues to be staggering. Nearly 49 companies proposing to raise Rs 84,000 crore are presently holding SEBI approval waiting to hit the market while another 67 companies looking to raise about Rs 1.02 lakh crore are awaiting SEBI approval.
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