India is on track to become the world’s third largest economy by 2027 with a GDP target of $7 trillion by 2030, a report said on Thursday, predicting record IPO fundraising in the country next year, topping Rs 2 lakh crore.
According to a report by Pantomath Group, a leading financial services conglomerate, India hosted twice as many IPOs as the US and 2.5 times more than Europe this year, as the country emerged as a leader in IPO volume globally.
“With the continued momentum in the markets, we now project that the equity raised through IPOs will cross Rs 2 lakh crore by the year 2025.
This historic event is a testament to the strength of India’s financial markets, investor confidence, and the important role that IPOs play in driving economic growth,” said Mahavir Lunawat, Managing Director of Pantomath Capital.
The report revealed impressive economic growth, industrial development, and the dominance of IPO markets, positioning the country as a global economic powerhouse.
In the country, 76 companies made Rs 1.3 trillion in the first 11 months of 2024, as positive regulatory changes and investor confidence fueled market momentum, even in a time of low inflation.
Qualified institutional placements (QIPs) in 2024 have increased, with 91 deals raising a record Rs 1,29,200 crore, surpassing last year’s Rs 52,300 crore, and a peak of Rs 80,500 crore in the calendar year 2020. — up.
“Multinational companies have shown the benefits of listing in India.
Factors like reduced cost of capital, broad consumer market, strong regulatory framework, are encouraging global players to consider Indian markets for their equity offerings,” Lunawat noted.
The year was dominated by the real estate, utilities, autos, metals, and PSU banking sectors, which accounted for 57 percent of total QIP issuance so far. Of the 91 issues, six delivered returns of more than 100 percent on their issued amounts.
More than two-thirds of stocks delivered positive returns against their valuations, according to the report.
