The Upcoming IPO pipeline for 2025 appears to be quite impressive, so brace yourself for yet another year of breaking records
Upcoming IPO: The year 2025 is shaping up to be a record-breaking year for IPOs in India. Data from Prime Database reveals that nearly Rs 1.80 lakh crore worth of public issues have already received approval from Sebi or are awaiting the green light.
This year, there are 28 companies in the pipeline looking to raise up to Rs 46,000 crore after receiving approval from the capital market regulator. Additionally, 80 companies are seeking approval to raise about Rs 1.32 lakh crore.
In the previous year, SME public issues saw tremendous success, collectively raising Rs 8,761 crore, an 87% increase from 2023. The average issue size of SME IPOs has also seen a significant six-fold rise over four years to Rs 36 crore last year, according to Prime Database. Retail investors showed strong interest in these offerings, with the average number of retail applications increasing to 1.88 lakh, compared to just 297 in 2020.
QIPs were a popular method of fundraising, with 99 companies raising Rs 1.38 lakh crore in 2024 through this route. Notable QIPs last year came from Vedanta and Zomato, each raising Rs 8,500 crore. It remains to be seen if the government will utilize the market to divest stake in PSUs this year, following the successful OFS of NHPC, NLC, GIC, and Cochin Shipyard in 2024, which raised Rs 8,947 crore.
Overall, 91 companies raised Rs 1.60 lakh crore through main board IPOs in 2024, a three-fold increase from the Rs 49,436 crore raised in 2023 through 57 IPOs. The growing participation led to a two-fold increase in the average deal size to Rs 1,756 crore. New age consumer tech companies made a strong comeback on the IPO scene, with eight IPOs, including Awf
In 2024, a total of Rs 64,499 crore was raised through initial public offerings, accounting for 40% of the total funds raised. The retail interest in IPOs was particularly noteworthy, with 66 out of 91 IPOs receiving more than 10 times subscription. Additionally, 10 IPOs were oversubscribed by more than three times, according to data.
The retail category saw bids totaling Rs 3.40 lakh crore for shares on offer, which was 113% higher than the total IPO mobilization for the year. This surge in interest reflects the enthusiasm for new investment opportunities.
Overall, the average oversubscription rate across categories was 45.39x, with the average retail oversubscription rate at 34.15x, both surpassing the figures from 2023. This underscores the high level of investor enthusiasm in the market.
Furthermore, strong listings were observed, with the average listing gain increasing to 30.25% compared to 28.68% in 2023. As of January 9, 65 out of the 91 IPOs from 2024 were trading above the issue price. The average gain from these 91 issues is over 44%, as reported by Prime Database.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.