2024 marked a historic phase for the Indian IPO market, with remarkable growth driven by SME (Small and Medium Enterprises) and mainboard listings. India emerged as the global leader in IPO activity, witnessing 326 new listings across the SME and mainboard platforms. This surge highlights the increasing confidence of businesses and investors in India’s capital markets.

SME Listings Shine Bright In 2024, the SME sector saw unprecedented growth, with 243 companies listed on platforms like NSE Emerge and BSE SME. This represents a 35.8% jump compared to 179 listings in 2023, reflecting the growing appeal of the SME IPO route for capital raising.

Mainboard Listings and Fundraising The mainboard segment also had a robust year, with 83 companies entering the market, up from 60 in 2023. Collectively, these listings raised ₹1,71,051 crore. Hyundai Motor India’s IPO stood out as the largest, raising ₹27,870 crore. Other major mainboard IPOs included Vodafone Idea Limited (₹18,000 crore) and Swiggy Limited (₹11,327.43 crore).

Milestones in SME Fundraising The SME IPO segment broke records, surpassing ₹9,000 crore in total funds raised. The largest SME IPOs included Danish Power Limited (₹197.90 crore) and KP Green Engineering Limited (₹189.50 crore). Other notable SME IPOs, such as Sahasara Electronics, Rajesh Power Services, SAR Televenture, Mach Conferences, and Ganesh Green Bharat, each had IPO sizes exceeding ₹120 crore.

Looking Ahead: The IPO Market in 225

As 2025 begins, the outlook for India’s IPO market remains optimistic, buoyed by the momentum of 2024. Key trends and factors are expected to shape the market in the coming year:

1. Sustained Growth in SME IPOs With streamlined regulations and increased transparency, more SMEs will likely explore IPOs to fuel growth and innovation.
2. Sectoral Expansion While technology, fintech, renewable energy, and e-commerce will likely remain dominant, traditional sectors like pharmaceuticals, manufacturing, and automobiles are poised to increase activity.
3. Pipeline of Upcoming IPOs A robust pipeline is already in place, with 190 DRHPs filed for SME IPOs and 86 for mainboard IPOs, ensuring a steady flow of new opportunities for investors.
4. Large-Scale Mainboard IPOs Major IPOs scheduled for 2025 will keep the mainboard segment vibrant, with significant capital-raising potential.
5. Global Economic Factors While global uncertainties such as inflation, interest rate changes, or geopolitical tensions may influence the market, India’s strong economic fundamentals and growing middle-class position the country as a key investment destination.
6. Investor Sentiment The robust returns from 2024’s IPOs have strengthened the confidence of both retail and institutional investors, setting a positive tone for 2025.

In conclusion, the Indian IPO market in 2024 has laid a solid foundation for continued growth in 2025. The SME sector, in particular, is expected to remain a hotspot for investors eager to tap into high-potential businesses. With a promising pipeline and strong market fundamentals, India’s IPO journey is set to scale new heights.