According to Prime Database, India's premier database on the primary capital market, the IPO market in FY2024-25 witnessed remarkable activity, with 78 companies raising a record-breaking Rs 1.62 lakh crore. This was a significant surge compared to the Rs 61,922 crore raised by 76 IPOs in the previous fiscal, reflecting heightened investor participation and market confidence.
The largest IPO of the year came from Hyundai Motor, which raised Rs 27,859 crore, followed by Swiggy at Rs 11,327 crore and NTPC Green Energy at Rs 10,000 crore. Meanwhile, the smallest IPO was launched by Kronox Lab Sciences, amounting to Rs 130 crore, demonstrating the wide spectrum of capital raised across different sectors. The sharp rise in IPO activity was fueled by robust investor confidence, an expanding retail investor base, and increased participation from institutional investors and foreign portfolio investors (FPIs). Favourable macroeconomic conditions and strong corporate earnings also contributed to the buoyant IPO market.
However, the recent market crash has led to a slowdown in IPO momentum. The recent correction in equities, coupled with mounting concerns over Donald Trump's trade policies and global economic uncertainties, has dampened investor sentiment. As a result, several companies have been forced to delay their listing plans. Market analysts estimate that IPOs worth approximately Rs 25,000 to Rs 30,000 crore have been postponed due to the prevailing market conditions. Despite the slowdown in the mainboard IPO segment, SME IPOs have remained active. The first two months of the current calendar year saw 20 SME IPOs each, raising Rs 880 crore and Rs 930 crore, respectively. However, March has seen a notable dip in activity, with only six SME IPOs launched so far, raising Rs 170 crore from investors. Interestingly, the total funds raised by SME entities in the first quarter of the current calendar year stood at Rs 1,980 crore, indicating steady demand for smaller-cap offerings.