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Tuesday, January 14, 2025

Indian firms record robust fundraising in 2024 equity market

The year 2024 witnessed Indian companies achieving a new milestone in capital markets by raising substantial funds through various avenues, including initial public offerings (IPOs), follow-on public offers (FPOs), qualified institutional placements (QIPs), and rights issues.

During the year, domestic companies raised ₹1.64 lakh crore through 90 IPOs. Additionally, shares worth ₹1.39 lakh crore were sold to institutional investors through public issues, marking the highest-ever amount raised in this category.

In comparison, 2021 saw the highest IPO fundraising of ₹1.18 lakh crore, with ₹41,997 crore raised from institutional investors through public offerings.

For rights issues, 20 companies have raised about ₹18,000 crore in 2024, compared to ₹7,266 crore in 2023 and ₹3,884 crore in 2022.

The IPO market is expected to remain active, with around 15 companies planning to raise ₹25,500 crore through public issues in December 2024.

Hyundai Motor India launched the largest IPO in Indian stock market history in 2024, with an issue size of ₹27,870 crore. This surpassed the previous largest IPO by LIC in 2022, which raised ₹21,008 crore.

Additionally, Vibhor Steel Tube’s IPO received 320 times subscription, the highest in 2024. Other IPOs, such as those of KRN Heat Exchanger & Refrigeration, Manba Finance, and Gala Precision Engineering, garnered over 200 times subscription.

Companies also raised ₹1.4 lakh crore this year through QIPs, which is the highest figure since 2020. Among these, Vedanta and Zomato raised ₹8,500 crore each through QIPs, while Adani Energy Solutions and Varun Beverage raised ₹8,373 crore and ₹7,500 crore, respectively.

Foreign investment in primary markets totaled $14 billion this year, according to National Securities Depository Ltd (NSDL), exceeding the previous record set in 2021.

(IANS)

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