India’s primary market is set to witness an increased momentum in 2024 as companies are likely to raise more than Rs 1 lakh crore via initial public offerings (IPOs) as against Rs 49,434 crore raised in 2023 through such offerings. The average size of the IPO is expected to rise from Rs 850 crore in 2023 to Rs 2,000 crore this year.
While 28 companies intending to raise over Rs 30,000 crore have got approval for IPO from Securities and Exchange Board of India (SEBI), another 36 companies have submitted draft red herring prospectuses (DRHPs) to SEBI, highlighting their plans to raise more than Rs 50,000 crore, as per primedatabase.com.
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One of the companies likely to enter the primary market is Ola Electric which filed its DRHP last month with Rs 8,300 crore offer. It is on track to become the first electric vehicle startup to hold a fresh public offer. Some of the other large-size IPOs include those of Hospitality unicorn Oravel Stays, the parent of Oyo, SoftBank-backed food delivery giant Swiggy and Byju's tutoring business Akash Educational Services with plans to raise Rs 8,300 crore each. Digital payments major PayU is expected to raise about ₹5,000 crore and National Securities Depository Ltd (NSDL) is likely to raise Rs 4000 crore.
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In 2021, the record was set with ₹1.19 lakh crore raised by 63 companies. India Inc raised ₹59,301 crore through 40 public offerings in 2022.
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