New IPOs add 3% to India's market cap in 2024

New listings through initial public offerings (IPOs) in 2024 contributed nearly 3 per cent (Rs 14 trillion) to India's market capitalisation, surpassing last year's contribution of 1.4 per cent (Rs 5 trillion).

According to Motilal Oswal, this year's absolute contribution is the highest ever, although 2017 and 2019 saw higher percentage contributions (3.7 per cent and 3.4 per cent, respectively).

IPO fundraising reached Rs 1.8 trillion in 2024, 2.6 times the Rs 57,600 crore (Rs 576 billion) raised in 2023. Notable IPOs of the year included Hyundai Motor India (Rs 27,860 crore/Rs 278.60 billion), Swiggy (Rs 11,330 crore/Rs 113.30 billion), NTPC Green (Rs 10,000 crore/Rs 100 billion), and Vishal Mega Mart (Rs 8,000 crore/Rs 80 billion).

'The past year has seen IPOs from diverse sectors, providing investors with varied opportunities to engage with India's growth narrative, a positive indicator for the Indian capital markets,' observed Motilal Oswal.

This year, the capital raised by largecap companies amounted to Rs 60,100 crore/Rs 601 billion (34 per cent of the total raised by just five companies). Meanwhile, midcap companies raised Rs 49,000 crore/Rs 490 billion (28 per cent raised by nine companies), and smallcap companies raised Rs 66,600 crore/Rs 666 billion (38 per cent by 303 companies, which includes SME IPOs). -- Business Standard