Indian equity capital markets raise record $49.2 bn in Jan-Sep period, IPOs jump 63 pc

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.