MUMBAI: $20.5 billion worth of IPO proceeds has made Dalal Street the second busiest in the world, making it the best-ever show in value and also the highest since records began in the 1980s—40 per cent more than the previous record in terms of volume in 2024—with a market share of 18 per cent, after the US which leads the listing space with 28 per cent market share. On the contrary, China, which took the lead in 2023, is at a distant third with just 7 per cent market share.
According to the data compiled by LSEG Deals Intelligence, which is the market data services arm of the London Stock Exchange Group, 2024 was a stellar year for the domestic equity capital markets with a record fund raising through IPOs. Total equity capital markets (ECM) proceeds more than doubled to $72.3 billion, marking the highest-ever annual total since records began in 1980. Of this IPOs alone chipped in with a record-breaking $20.5 billion, which is an all-time high, led by major listings from Hyundai Motor India ($3.3 billion) and Swiggy ($1.3 billion), Elaine Tan, a senior manager at LSEG Deals Intelligence said.
“The number of IPOs also increased 40 per cent from 2023, making it the busiest year since the IPO frenzy during the mid-90s. This has India establishing itself as a dominant player in the global IPO markets, with 18 per cent global IPO proceeds, second only to the US which netted 28 per cent of the total pie; and China, which was the leader in 2023, is at a distant third with just 7 per cent,” Tan said, adding “with a robust IPO pipeline, the momentum is expected to continue in 2025.”
ECM hit a record high raising $72.3 billion in 2024, up 112.4 per cent over 2023, surpassing the 2022 record in terms of value. The number of ECM offerings also rose 42.5 per cent on-year.
Initial public offerings (IPOs) reached an all-time high worth $20.5 billion, up 176 per cent over 2023, driven by a 40 per cent jump on-year in number of IPOs.
Follow-on offerings, which accounted for 71 per cent of overall ECM proceeds, raised $51.6 billion, up 94 percent over 2023. Number of follow-on offerings grew 45.3 per cent on-year. This is the highest-ever annual total for follow-on offerings by proceeds and number of deals.
Industrials sector accounted for the majority of the ECM activity with 23.4 per cent market share worth $16.9 billion, a 190.9 per cent increase on-year followed by financials with 13.2 per cent market share, high technology came next with 9.6 per cent market share, raising $6.9 billion, a 67.6 per cent increase over 2023.
Meanwhile, overall, the deal street saw the busiest year ever since records began in 1980 with the number of deals crossing 2,700 but in terms of value, it is down 11.4 per cent to a four-year low at $80.5 billion.
A record year for the ECM has seen investment bankers laughing their ways to banks, earning $1.3 billion in estimated fees during 2024, just 1 percent more than 2023. Of this ECM underwriting fees reached $645.2 million, up 80 per cent on-year, the highest annual total since records started in 2000. DCM (debt capital market) fees totaled $261.2 million, up 5 per cent from a year ago. But syndicated lending fees fell 43 per cent from the comparable period last year and generated $138.3 million. M&A fees declined 42 per cent on-year to $250.7 million.