Indian IPO Surge: Fresh Equity Dominates Viral Fundraising Trend

Indian companies increasingly go public to raise fresh funds, with IPOs yielding 52% of total funds from new equities by FY25. A dramatic increase in fresh equity issuance is noted, especially among SMEs. September 2024 saw Rs 1.85 lakh crore raised via equity and debt, reflecting strong market appetite.

In a striking development, Indian companies are embracing public listings as a robust method for raising fresh funds. The latest report from the National Stocks Exchange (NSE) reveals that the share of funds raised through fresh IPOs has surged remarkably, growing from 37 percent in FY22 to 52 percent by FY25.

This transition underscores a significant shift towards generating capital through new equities rather than selling stakes by existing shareholders. The overall fundraising landscape via equity and debt also saw substantial traction, culminating in an impressive Rs 1.85 lakh crore by September 2024.

The rise is particularly prominent in mainboard IPOs, where fresh equity formed 54 percent of the Rs 14,825 crore raised in September. The EMERGE platform for SMEs noted an 81 percent surge in capital raised via IPOs month-on-month. Such a wave of fresh equity issuance and debt reaffirms burgeoning corporate ambitions and investor confidence in diverse market avenues.

(With inputs from agencies.)