India led the world in IPOs in FY24 as primary markets created Rs 10.9 lakh crore of capital

The number of IPOs that were launched in FY24 increased by 66 per cent to 272.

The robust primary market activity has been helped in capital formation to tune of Rs 10.9 lakh crore, of which more than three-fourth was created through debt issuances, according to the Economic Survey 2024.

"This is close to 29 per cent of the Gross Fixed Capital Formation of private and state-run corporates in FY23", said the document that was tabled before the Parliament on July 22.

The primary market boom has been helped by a healthy economic performance and a favourable investment climate for Indian equities, the Economic Survey added.

Track the latest highlights of the Economic Survey right here.

QIPs, Right Issue In Vogue

Fund raise via all modes, that is, equity, debt, and hybrid saw strong year-on-year growth, with hybrid route rising over 513.6 per cent, in FY24.

"Qualified Institutional Placements (QIPs) emerged as a critical equity fund raising mechanism for the corporates during FY24", the Economic Survey noted, while fund raise via rights issues more than doubled to Rs 15,110 crore during FY24.

IPO Action

The number of IPOs that were launched in FY24 increased by 66 per cent to 272, as against 164 in FY23. The amount raised through the IPO route rose by 24 per cent to Rs 67,995 crore in FY24, said the Economic Survey. A E&Y Global IPO report said India was the global leader in IPO listings last fiscal.

SME Space Heating Up

The SME platform for small enterprises tapping the capital market saw intense activity in FY24 with the number of SME IPOs and FPOs rising by 1.6 times to 196 in FY24, as against 125 in FY23. Fund raised through SMEs rose by more than 2-1/2 times over the previous year to Rs 6,095 crore in FY24, said the economic document.