Mumbai: The India equities capital markets reached a record high, raising $49.2 billion in the first nine months of this year (January-September), a staggering 115 percent increase over the previous year. This surpasses the yearly record set in 2020 by proceeds, according to a report released on Thursday.
According to a survey by LSEG, a worldwide financial markets infrastructure and data provider, the number of equity capital market offers surged by 61% year on year.
Indian issuers raised $9.2 billion in initial public offerings (IPOs), up 96% from the same time last year and the biggest first nine-month total since 2021.
The number of IPOs increased by an astonishing 63 percent year on year. Follow-on offerings, which accounted for 81% of India’s total equity capital market revenues, garnered $39.9 billion, a 119 percent increase from the previous year. The number of follow-on products increased by 59% year over year, according to the report.
The frenzy of activity is set to continue, with a strong pipeline of IPOs lined up, including Swiggy, Hyundai Motors, and LG Electronics seeking to float their Indian subsidiaries.
Equity capital market issuance from India’s industrial sector accounted for the majority of the country’s equity capital market activity, with a 23% market share worth $11.3 billion in proceeds, a 137% rise over the previous year.
According to the report, financials secured 15.1 percent of the market share, with proceeds up 78.8 percent over the first nine months of 2023.
The report mentioned that telecommunications rounded out the top three, accounting for 11.5 percent of the market and raising $5.7 billion, a significant rise over the same period last year.
Elaine Tan, Senior Manager at LSEG Deals Intelligence, stated that the growth in the Indian equity capital markets was driven by a record number of block trades, which raised $23 billion in the first nine months of 2024, up 78% from the same period last year and exceeding any previous 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.
According to the report, various industries, including infrastructure, renewable energy, healthcare, and fast-moving consumer goods, are hotbeds for deal-making activity in India. This activity is driven by the expanding middle class and consumer spending, which reflect the Indian economy’s growth.
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–IANS
