IPOs to get larger after average size more than doubles to ₹2,000 crore this year: Kotak’s S Ramesh
Subscribe to enjoy similar stories. Initial public offerings in India are getting bigger, with their average size increasing to almost ₹2,000 crore so far in 2024, more than doubling from the average in 2023, said S Ramesh, managing director and CEO of Kotak Investment Banking. With more large firms and new-age companies looking to list over the next two years, the average IPO size is likely to go up further, Ramesh said.
“The average size (of IPOs) has roughly moved from about ₹900 crore to close to ₹2,000 crore because this year saw the advent of some of the large IPOs of companies such as Bajaj Housing Finance, Hyundai, FirstCry, and Swiggy. So, I think it has navigated towards larger size on an average," Ramesh said in an interview, without providing any estimates. The large IPOs in 2024 included Hyundai Motor India ( ₹27,870 crore), Swiggy ( ₹11,237 crore), Bajaj Housing ( ₹6,560 crore), Ola Electric Mobility ( ₹6,145 crore) and Brainbees Solutions (FirstCry) for ₹4,193.73 crore.
The Carlyle Group Inc is exploring a $1 billion share sale in portfolio company Hexaware Technologies Ltd later this year or in 2025. It’s been a busy year for investment banking teams across banks, given that the capital market has been buoyant. In the current calendar year, there have been 73 IPOs that mopped up $16.7 billion ( ₹1.4 trillion), Kotak Investment Banking said, citing data from Prime Database.
That was more than double the 58 IPOs amounting to $6.35 billion in 2023, the data showed. Follow-on share sales by companies also peaked in 2024. There were 93 follow-on share sales amounting to over $13 billion compared with 58 amounting to $7.7 billion in 2023.
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