India to see record-breaking IPO fundraising in 2025 exceeding Rs 2 lakh crore

India is on track to become the world's third-largest economy by 2027 with a $7 trillion GDP target by 2030, a report said on Thursday, predicting record-breaking IPO fundraising in the country next year, exceeding Rs 2 lakh crore.

According to the report by Pantomath Group, a leading financial services conglomerate, India hosted twice as many IPOs as the US and 2.5 times more than Europe this year, as the country emerged as the leader in IPO volume globally.

“With the continued momentum in the markets, we now project that equity raised through IPOs will cross Rs 2 lakh crore in the year 2025.

This milestone is a testament to the resilience of India's capital markets, the confidence of investors, and the critical role IPOs play in fueling economic growth,” said Mahavir Lunawat, Managing Director of Pantomath Capital.

The report outlined stellar economic growth, sectoral advancements, and IPO market dominance, positioning the country as a global economic powerhouse.

In the country, 76 companies raised Rs 1.3 trillion in the first 11 months of 2024, as favourable regulatory reforms and investor confidence fuelled market momentum, even during downturns.

Qualified institutional placements (QIPs) in 2024 have surged, with 91 deals raising a record Rs 1,29,200 crore, surpassing last year's Rs 52,300 crore, and the previous peak of Rs 80,500 crore in the calendar year 2020 -- marking an all-time high.

“Multinational corporations have demonstrated the strategic advantages of listing in India.

Factors such as reduced capital costs, wide consumer market, robust regulatory regime, encourage global players to consider Indian markets for their equity offerings,” Lunawat noted.

The year was dominated by the real estate, utilities, automobiles, metals, and PSU bank sectors, which collectively accounted for 57 per cent of the total QIP issuances thus far. Of the 91 issues, six have delivered returns exceeding 100 per cent over their issue prices.

More than two-thirds of the stocks have delivered positive returns against their issue prices, according to the report.