India Inc raises record $30 billon in 6 months, riding FPO wave
equity market through IPOs & FPOs during the first half of 2024, more than double the amount raised in the same period last year. The Jan-June total is the highest ever in terms of proceeds, with the number of issuances also rising 64%.
The surge has been driven by follow-on public offers (FPOs) this year — making up 85% of the total proceeds this year, LSEG’s India Investment Banking Review said.
In the first half of 2024, Indian IPOs raised $4.4 billion —a 98% increase compared to the year-ago period. The number of IPOs also saw a 71% jump year-on-year. India accounted for 27% of global IPOs by volume, up from 13% in the same period last year.
Follow-on offerings raised $25.1 billion, a 156% increase from a year ago. The number of follow-on offerings grew by 56% over the same period last year. An FPO refers to an addi tional issuance of a company’s shares after its IPO.
Despite the flood of new shares, demand has continued to outstrip supply as investors rushed in to buy more equity after the general election results were announced, pushing Nifty up by 10% in the first half of the year.
According to analysts, 2024 might well be a record year for equity issuances if Hyundai India proceeds with its proposed $2.5-3 billion (nearly between Rs 21,000-25,000 crore) IPO — which will be India’s biggest ever. Other large IPOs expected by the market include a Rs 8,300-crore offer from Pine Labs, a Rs 7,000-crore issue by Bajaj Housing Finance and a possible listing of HDB Finance.
The significant inflow of funds into
