The Economic Survey 2024-25 highlights India’s remarkable rise in global initial public offerings (IPOs), with its share climbing to 30% in 2024 from 17% in the previous year. This growth has positioned India as the top contributor to global primary resource mobilization.
According to the report, capital markets play a crucial role in India’s economic expansion by fueling capital formation, increasing financial participation, and enabling wealth creation. Despite challenges such as geopolitical uncertainties, currency fluctuations, and market volatility, the Indian stock market reached new highs in 2024, with periodic corrections.
Investor participation has been a major driver of this growth. The number of investors surged from 49 million in FY20 to 132 million by the end of December 2024. This expansion, along with strong IPO activity and regulatory measures from the Securities and Exchange Board of India (SEBI), has created a solid foundation for sustainable market growth.
Despite market fluctuations, India’s primary markets experienced strong listing activity and investor enthusiasm in FY25. The Economic Survey cited a report from E&Y Global IPO Trends, which highlighted that Indian stock exchanges provide favorable conditions for foreign corporations to list their subsidiaries, unlocking significant value.
Between April and December 2024, total fundraising from equity and debt markets reached approximately $133,000 million, a 5% increase from the total raised in FY24. This amount represents 25.6% of the gross fixed capital formation by private and public corporations during the fiscal year. The number of IPOs jumped by 32.1%, with 259 listings compared to 196 in the same period of the previous year. Capital raised nearly tripled from $6,400 million to $18,600 million.
The report also highlighted a rise in IPO deal sizes. The average deal size for mainboard IPOs increased to $2,550 million, up from $980 million in FY24. Similarly, for small and medium enterprises (SMEs), the average IPO size grew from $37 million to $47 million during the same period.
With strong investor confidence and favorable regulatory policies, India’s capital markets continue to attract global attention, reinforcing its position as a key player in the world economy.
