India is witnessing a surge in share sales, including initial public offerings (IPOs), marking it as Asia’s most vibrant market for investment opportunities. As the elections conclude, a flurry of deals is expected to set a new record, reflecting investors’ keen interest in tapping into the rapid growth of the region’s third-largest economy.
According to data compiled by Bloomberg, India has raised approximately $3.9 billion through IPOs so far this year, more than double the amount recorded during the same period in 2023. Remarkably, this figure surpasses the combined IPO proceeds in South Korea and Hong Kong.
The surge in share sale activities extends beyond IPOs, encompassing blocks and placements as well. In the first half of 2024, sales of new and existing shares have collectively generated around $18.64 billion, nearly eclipsing the record set in the latter half of 2017.
The pinnacle of this year’s IPO activity is anticipated with the launch of South Korea’s Hyundai Motor Co.’s debut share sale of its India unit, projected to raise approximately $2.5 billion. This move is poised to mark one of the largest-ever listings in India, signifying the onset of a bustling phase in the country’s capital markets.
V Jayasankar, a managing director and board member at Kotak Mahindra Capital Co., expressed his astonishment at the diversity of companies entering the market. He noted, “This kind of breadth of companies coming to the market is phenomenal.” Jayasankar predicted a significant surge in equity capital markets activity post-elections, projecting IPO fundraising to exceed $20 billion over the next two years. He also anticipates robust growth in overall ECM activity, including follow-on offerings and stake sales, well into 2025.
