Market Insights Financial Corporate Finance

Initial Public Offerings - India

India

The transaction value in the Initial Public Offerings market is projected to reach €3.91bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 1.79% resulting in a projected total amount of €3.98bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to €29.78m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (€58,730.00m in 2024).

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Analyst Opinion

The Initial Public Offerings market in India has been experiencing significant growth and development in recent years.

Customer preferences: Investors in India have shown a strong inclination towards investing in IPOs of companies that demonstrate high growth potential and innovative business models. They often prefer companies from sectors such as technology, e-commerce, and healthcare, which are perceived to have promising future prospects.

Trends in the market: One notable trend in the Indian IPO market is the increasing participation of retail investors. This trend can be attributed to the democratization of investing through online platforms and the growing interest in stock market participation among the general public. Additionally, there has been a rise in the number of IPOs being launched by startups and unicorns looking to raise capital for expansion and diversification.

Local special circumstances: India's regulatory environment and listing requirements play a significant role in shaping the IPO market. The Securities and Exchange Board of India (SEBI) has been taking measures to streamline the IPO process and enhance transparency, which has boosted investor confidence in the market. Moreover, the presence of robust institutional investors in India provides stability to the IPO market and encourages companies to go public.

Underlying macroeconomic factors: The overall economic growth of India, coupled with favorable demographic trends and increasing disposable incomes, has created a conducive environment for companies to tap into the capital markets through IPOs. The government's initiatives to promote entrepreneurship and ease of doing business have also contributed to the vibrancy of the IPO market in India. Additionally, the liquidity in the market driven by foreign institutional investments has provided a strong foundation for companies planning to go public.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.