India Becomes the Top Country for IPOs: Here's Why

In 2024, India became the world leader in initial public offerings (IPOs), raising $19.5 billion through 23% of all IPOs globally. This milestone shows how India's standing in the global financial system has improved due to an increase in venture-backed initial public offerings (IPOs), the expansion of SMEs, and investor trust.

Why is India Emerging as a Global Leader in IPOs?

In 2024, there were 268 initial public offerings (IPOs) in India, comprising 90 mainboard listings and 178 SME listings. India was the #1 IPO destination with the biggest number in the world. Economic stability, regulatory changes, and the growing involvement of both domestic and foreign institutional investors are the reasons for the nation's capacity to draw significant investment interest.

In India, the amount of money obtained through venture-backed initial public offerings (IPOs) has more than doubled since 2021. As more firms decide to go public, this increase suggests robust venture capital and private equity activity.

Hyundai Motors India's Record-Breaking IPO

The major game-changer in India’s IPO market was the IPO of Hyundai Motors (India) Private Limited, which collected ₹27,870 crore ($3.31 billion). This was 2024's second-largest initial public offering (IPO) worldwide and the biggest in India for the year. These high-value listings demonstrate how confident international corporations are in the Indian stock market.

SME IPOs have also increased dramatically. Their median market valuation has grown by 4.5 times since 2012, and in 2024, it will be close to ₹100 crore. At the time of IPO, median revenues also increased to around ₹70 crore, indicating that investors are becoming more aware of and trusting of small and mid-sized enterprises. 

Smaller IPOs, But a Growing Market

India's initial public offering (IPO) market is expanding rapidly, however, over the last three years, the median market value of listed companies has decreased, falling from ₹3,800 crore in 2021 to ₹2,770 crore in 2023. This means that even while more businesses are coming public, they might not be as large as in prior years.

In the meantime, the fast commerce industry in India has grown quickly, from $300 million in FY22 to an anticipated $7.1 billion in FY25. India is a major player in the e-commerce industry as a result of the growth of online grocery and delivery platforms, which is also attracting investors.

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India’s Growing Presence in the Global IPO Market

India's dominance in the global initial public offering (IPO) scene in 2024 is indicative of a vibrant financial market with rising investor participation. More venture-backed IPOs and SME listings show a positive long-term trend, even though company valuations face challenges. India will continue to be a significant player in the global initial public offering (IPO) markets due to its solid economic foundation and growing international interest.