The India equity capital markets hit a record high and raised $49.2 billion in the first nine months this year (January-September period) -- a massive 115 per cent growth compared to a year ago -- surpassing the annual record set in 2020 by proceeds, a report showed on Thursday.
The number of equity capital market offerings also saw a 61 per cent increase year-on-year, according the report by LSEG, a global financial markets infrastructure and data provider.
Initial public offerings (IPO) from Indian issuers raised $9.2 billion, up 96 per cent compared to the same period last year, making it the highest first nine-month total since 2021.
Number of IPOs jumped an impressive 63 per cent YoY. Follow-on offerings, which accounted for 81 per cent of India’s overall equity capital market proceeds, raised $39.9 billion, up 119 per cent from a year ago, while number of follow-on offerings grew 59 per cent YoY, the report mentioned.
The flurry of activity is expected to continue, with a robust pipeline of IPOs lining up such as Swiggy, Hyundai Motors and LG Electronics planning to list their Indian units.
The equity capital market issuance from India’s industrials sector accounted for majority of the nation’s equity capital market activity, with 23 per cent market share worth $11.3 billion in proceeds — a 137 per cent increase from a year ago.
According to the report, financials captured 15.1 per cent market share as proceeds grew 78.8 per cent compared to the first nine months of 2023.
Telecommunications rounded out the top three and captured 11.5 per cent market share, raising $5.7 billion, a significant increase compared to the same period last year, the report mentioned.
Elaine Tan, Senior Manager at LSEG Deals Intelligence, said the growth in the Indian equity capital markets was driven by a record number of block trades which raised $23 billion during the first nine months of 2024, up 78 per cent compared to the same period last year, and exceeding any past annual figures.
‘Both issuers and investors are capitalising on the favourable market conditions and strong secondary markets, raising capital additional share sales and new listings in India’s equity capital markets,” Tan explained.
The report mentioned that diverse sectors — from infrastructure, renewable energy, healthcare and fast-moving consumer goods — are hotbeds for deal making activity involving India driven by the growing middle class and consumer spending, reflecting the growing nature of the Indian economy.
Indian share market ends in red ahead of key global policy decisions
Ahead of key policy decisions especially from the US Federal Reserve, the Indian stock market closed in red on Tuesday as selling was seen in the PSU bank, auto, IT, financial service, pharma, FMCG, metal, and realty sectors of Nifty.
Buy on dips strategy working well in Indian stock market amid sharp rebound
The surge in the Indian stock market on Friday helped the Indian benchmark indices end the week on a positive note. A strong 2,000-point rebound from the lows suggests that the buy-on-dips strategy is working well in the market, experts said on Saturday.
India’s GDP growth to hold steady in FY25, likely to clock 6.7 pc in FY26
India's economic growth will continue to hold steady in FY25 despite global uncertainties, with a projected GDP at 6.7 per cent in FY26, a report showed on Friday.
Sensex closes at 82,133 after 2,000 pts rally from day low
According to the experts, "Currently, the market is anticipating a revival in consumer spending, driven by the festive season and year-end holidays, adding to the sentiments. Additionally, an expectation of an increase in the US spending is propelling the IT sector."