The Indian equity capital markets have achieved a remarkable milestone, raising a record $49.2 billion in the first nine months of 2024, marking a staggering 115% increase compared to the same period last year.
This surge has surpassed the previous annual record set in 2020, according to a report released by LSEG, a global leader in financial markets infrastructure and data.
The report highlights a 61% year-on-year increase in the number of equity capital market offerings, reflecting a vibrant investment landscape.
Initial public offerings (IPOs) alone contributed significantly, raising $9.2 billion; a 96% jump from the previous year and the highest total for the first three quarters since 2021.
The number of IPOs increased by an impressive 63%, showcasing strong investor interest.
Follow-on offerings were a major driver of growth, accounting for a staggering 81% of total proceeds, with $39.9 billion raised – up 119% year-on-year.
The number of follow-on offerings also rose by 59%, indicating a robust appetite for equity financing.
The momentum is likely to continue, with a strong pipeline of IPOs from prominent companies like Swiggy, Hyundai Motors, and LG Electronics planning to launch their Indian units.
The industrial sector emerged as the dominant player in equity capital markets, holding a 23% market share with proceeds of $11.3 billion; an increase of 137% from last year.
The financial sector followed, capturing 15.1% of the market share with a 78.8% rise in proceeds, while telecommunications accounted for 11.5% of the market, raising $5.7 billion, significantly higher than the previous year.
Elaine Tan, Senior Manager at LSEG Deals Intelligence, noted that the surge in the Indian equity capital markets was fueled by a record number of block trades, which raised $23 billion in the first nine months of 2024, up 78% from the same period last year.
This figure surpasses any previous annual totals.
Tan emphasized that both issuers and investors are capitalizing on favorable market conditions and strong secondary markets, driving capital-raising activities through additional share sales and new listings.
The report also highlighted diverse sectors such as infrastructure, renewable energy, healthcare, and fast-moving consumer goods as hotspots for deal-making activity, driven by India’s growing middle class and increasing consumer spending, underscoring the robust trajectory of the Indian economy.
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