India’s equity market is set to sustain its robust momentum, with initial public offerings (IPOs) worth $35 billion expected over the next 12 months, according to Kotak Investment Banking. The firm, which topped the LSEG Asia IPOs League Table in 2024 and ranked 10th globally, foresees continued strength in the market.
In 2024, India achieved a record-breaking equity fundraising of $74 billion, solidifying its position as the second-largest market globally for equity capital. “India accounted for around 14% of the global equity capital markets, which was a pleasant surprise,” said V. Jayasankar, Managing Director at Kotak Investment Banking.
Broad-Based Growth Across Sectors
Unlike global markets dominated by specific sectors like technology or healthcare, India’s fundraising activity has been spread across diverse industries. This broad-based growth underscores the depth and resilience of the Indian equity market.
Also Read: India’s IPO Boom Set To Continue In 2025 Despite Regulatory Headwinds
Domestic institutional investors (DIIs) have played a critical role in stabilizing the market amid geopolitical risks and volatile global conditions. DIIs infused $62 billion in 2024, driven by increasing inflows from systematic investment plans (SIPs). These investments offset muted activity from foreign portfolio investors (FPIs), ensuring smoother execution of equity transactions.
Rising Deal Sizes And MNC Listings
Kotak highlighted a notable rise in deal sizes, with over 30 transactions exceeding $500 million in 2024. Multinational corporations (MNCs) are also increasingly choosing India as a listing destination. By debuting their subsidiaries on Indian exchanges, MNCs have contributed significantly to market activity, accounting for nearly one-third of sell-downs last year.
The successful IPO of Hyundai India has spurred more MNCs to consider public offerings as a strategy to unlock value. Kotak expects this trend to further boost India’s already vibrant IPO market in 2025.
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