Indian Primary Markets Achieve Highest IPO Volumes Globally In 2024: EY Report

The current calendar year has been a blockbuster one for the Indian primary markets with 337 issues opening for subscription (across mainboard and SME). The surge witnessed in the primary markets has led to India leading the list globally in terms of initial Public Offer (IPO) volumes for the first time ever. IPO volumes rose to a two-decade high at $19.9 billion in 2024.

The number of new stocks listed in the Indian primary market in 2024 was two and a half times that of Europe. The current year was also historic for the Indian primary market as Hyundai Motor India floated its Rs 27,870.16 crore public offer. The Hyundai Motor India IPO is the largest public issue floated in the primary market as of 2024. Other notable issues included food delivery platform Swiggy’s IPO and the public issue of state-owned company NTPC Green Energy’s IPO.

As per the report factors such as strong economic growth and an investor-friendly environment have led to India emerging as one of the major beneficiaries of shifting global economic and geopolitical dynamics. Some of the other major factors cited by the report included India’s support of entrepreneurs and innovation along with a positive investor sentiment driven by robust support for renewable energy on the policy end.

While the Indian primary market led the list in terms of IPO issuance, the US primary market-led in terms of IPO proceeds, index returns and valuations, according to the report. The US IPO proceeds stood at $32.8 billion in 2024, marking a strong comeback for the US for the first time after 2021.

The Indian Primary market also saw issues being floated across various sectors in India, indicating growing market activity as per the report. Additionally, India's deal value surged nearly 80 per cent, with notable listings such as that of Vishal Mega Mart and Allied Blenders & Distillers Ltd.

EY projected in the report that India’s IPO market is expected to maintain its strong momentum despite potential headwinds from economic slowdowns in 2025. The report highlighted factors such as robust investor sentiment and a strong pipeline of companies planning to launch their IPOs by mid-2025 which are likely to keep market enthusiasm strong.