IPO frenzy to continue; fundraising may cross Rs 2 lakh crore in 2025: Pantomath Group

Pantomath Group believes that India Inc may raise more than Rs 2 lakh crore through initial public offerings (IPO) in 2025. Data shows that as many as 76 companies have raised a record Rs 1.34 lakh crore (ex-anchor book) from the primary market till date. The financial services firm believes that favourable market conditions, increased retail participation, and a strong economic outlook have driven this boom.

In the past three years, companies raised Rs 49,436 crore in 2023, Rs 59,302 crore in 2022 and Rs 1.19 lakh crore in 2021.

“Multinational corporations have demonstrated the strategic advantages of listing in India. Factors such as reduced capital costs, wide consumer market, robust regulatory regime, encourage global players to consider Indian markets for their equity offerings. Increasing participation of multinational corporations on Indian Exchanges adds a new dimension to the Indian capital market,” said Mahavir Lunawat, Managing Director of Pantomath Capital.

Lunawat further added that in our recap 2024. Crystal Gaze 2025 report, Pantomath was the first to anticipate that IPO fundraising in FY25 would surpass Rs 1 lakh crore — a target that has already been exceeded well ahead of expectations.

“With the continued momentum in the markets, we now project that equity raised through IPOs will cross Rs 2 lakh crore in the year 2025. This milestone is a testament to the resilience of India’s capital markets, the confidence of investors, and the critical role IPOs play in fueling economic growth,” he said.

Meanwhile, average IPO subscription rate also witnessed a substantial increase, from 16 times in 2022 to 64 times in 2024. The figure stood at 44 times in 2023. “This suggests heightened investor interest and enthusiasm, driven by strong returns and attractive valuations. It also indicates a supply-demand imbalance where the number of investors far exceeds available shares, reflecting a bullish market sentiment. Such high subscription rates might also pose challenges for retail investors in securing allocations,” Pantomath Group said in a report.

Data also highlighted that companies have progressively been raising larger amounts of capital through public offerings. The average IPO size increased to Rs 1,767 crore in 2024 from Rs 867 crore last year. The average IPO size was around Rs 1,884 crore in 2021.

“The surge in 2024 suggests that market conditions and investor confidence have created an environment where larger-scale IPOs are more viable. It also highlights a shift toward big-ticket listings, reflecting the growing maturity of companies entering the public markets and the increasing ability of the Indian IPO ecosystem to support substantial fundraises,” Pantomath Group said.