India has emerged as Asia's leading market for initial public offerings (IPOs) in 2024, surpassing China and becoming the world's second-largest equity fundraising market after the United States. This achievement is driven by significant listings from companies such as Swiggy and Hyundai Motor India. The National Stock Exchange of India is poised to lead in primary listings by value, overtaking major exchanges like Nasdaq and the Hong Kong Stock Exchange.
The surge in India's IPO market is attributed to a robust stock market rally and increased domestic investment. Households are increasingly channeling funds into local equities, contributing to the market's buoyancy. In 2024, 298 companies went public, raising ₹1.4 trillion ($16.6 billion), marking a 140% increase from the previous year.
Notable IPOs include MobiKwik and the Blackstone-backed International Gemological Institute. Additionally, major companies like LG Electronics India and Flipkart are expected to launch their IPOs in 2025, indicating sustained momentum in the market.
In contrast, China's IPO activity has declined significantly due to stringent regulations and efforts to balance market activities. The value of primary and secondary listings in mainland China fell about 86% from over $48 billion in 2023 to just $7.5 billion in 2024.
Analysts remain optimistic about India's IPO market, though they caution that its growth may be influenced by potential recoveries in the U.S. and Europe. Factors such as global economic conditions and geopolitical tensions could impact the sustained momentum of IPOs in India.
Overall, India's ascent in the IPO rankings underscores its growing prominence in the global financial landscape, with expectations of continued robust activity in the coming year.
References:
India roars ahead of China to top Asian IPO rankings
Fast-growing Indian market behind only the US in money raised by company listings
Krishn Kaushik
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