The primary market is seeing a resurgence, attracting renewed interest from domestic and international investors. According to a recent report by GlobalData, the Initial Public Offering (IPO) market in the first eight months of calendar year 2024 (CY24) is on track to raise US$ 65 billion across 822 listings, reflecting a 17.4% increase in the total amount raised compared to the same period in 2023. Although the number of listings has decreased from 1,564 IPOs in 2023 to 822 this year, the growing focus on larger, more valuable IPOs globally has led to a significant rise in the total capital raised.

This upward trend in the global IPO market is indicative of a more selective approach among investors, who are now emphasizing financial sustainability and profitability over sheer volume. As macroeconomic conditions stabilize, investors are increasingly turning their attention towards IPOs that showcase strong financial fundamentals, a strategy that is paying off for companies with robust growth potential.

Global IPO Market Trends

As tighter monetary conditions continue to shape investment decisions, the GlobalData report indicates that 2024’s IPO landscape is being influenced by several factors, including shifts in monetary policy, geopolitical developments, and changing investor preferences. With the technology and communications sectors leading the charge, accounting for 135 IPOs valued at US$ 6.4 billion, other sectors are also contributing to this revival. The financial services sector has seen US$ 11.6 billion raised through IPOs, while construction companies have contributed US$ 3.9 billion.

India Leads the APAC Region

The Asia-Pacific (APAC) region, which has been pivotal in driving global IPO growth, continues to be dominated by India. In 2024, India led the region with 227 IPO transactions, collectively valued at US$ 12.2 billion. This success is largely attributed to the increased participation of small and medium enterprises (SMEs) in the primary market, which has helped the country maintain its leadership position in the region.

India’s robust performance is not only driven by SME listings but also by a growing interest from both private equity and venture capital-backed firms. This is particularly noteworthy as macroeconomic stability returns, and companies that demonstrate financial resilience are better positioned to attract investment. According to Mr. Murthy Grandhi, a company profiles analyst at GlobalData, the IPO market has seen an uptick in activity across several sectors, including technology, financial services, and construction.

Key IPOs Shaping the Indian Market

Several high-profile IPOs are expected to hit the Indian markets in the coming months, signalling further growth and opportunities for investors. Companies such as Hyundai Motor India, Swiggy, Hexaware Technologies, NTPC Green Energy, Afcons Infrastructure, Tata Play, and Vishal Mega Mart are set to raise a combined total of nearly US$ 7.17 billion (approximately Rs. 60,000 crore) through their IPOs.

The resurgence of the IPO market in India is also being driven by the "Make in India" initiative, which continues to bolster the country's manufacturing and service sectors. In addition, the growing demand for sustainable investments and the increasing adoption of green energy solutions have positioned companies like NTPC Green Energy as attractive investment opportunities for global and domestic investors alike.

Sector-Wise Breakdown of Global IPOs

In 2024, the technology and communications sectors have led global IPO activity with 135 transactions, raising US$ 6.4 billion. This reflects the ongoing demand for technology-driven solutions and innovations, especially as companies in this sector continue to deliver high growth rates.

Meanwhile, the financial services sector has also been a major contributor, with US$ 11.6 billion raised through IPOs, further underscoring the importance of financial stability and profitability in attracting investor interest. The construction sector rounds out the top three sectors, having raised US$ 3.9 billion, a testament to the sustained demand for infrastructure development across key global markets.

Market Outlook and Future Prospects

Looking ahead, several factors will influence the global IPO market in the coming months. Shifts in monetary policy, particularly in the face of rising inflation and interest rate hikes, will play a critical role in shaping the IPO landscape. Investors are expected to continue focusing on companies that demonstrate strong financial fundamentals and have well-defined growth strategies.

Additionally, the growing emphasis on environmental, social, and governance (ESG) criteria will likely drive investments into companies that are committed to sustainable growth and adhere to ethical business practices. This trend is expected to favour companies in the green energy, technology, and consumer goods sectors, as they are well-positioned to attract capital in the current market climate.

Indian IPO Market on the Rise

For Indian companies, the outlook remains highly optimistic. In 2024, the country has solidified its position as a leading player in the APAC IPO market, with 227 IPOs raising US$ 12.2 billion. This momentum is expected to continue as more companies look to go public, capitalizing on favourable market conditions.

Notably, companies like Swiggy, Hyundai Motor India, Tata Play, and Vishal Mega Mart are among the most anticipated IPOs in India for the rest of 2024. These listings not only highlight the growth of India’s consumer-driven economy but also emphasize the role of technology and innovation in shaping the future of the country's capital markets.

As more companies prepare to list on the stock exchange, investors are increasingly drawn to IPOs that promise sustainable growth, financial resilience, and profitability. This shift towards quality over quantity is expected to further strengthen India’s primary market in the years to come.

Conclusion

The global IPO market in 2024 is witnessing a revival, with US$ 65 billion raised across 822 IPOs in the first eight months alone. India, leading the APAC region with 227 IPOs worth US$ 12.2 billion, continues to demonstrate its strength as a key player in the global capital markets. As companies like Hyundai Motor India, Swiggy, and Tata Play prepare for their upcoming IPOs, the outlook remains positive for both domestic and international investors.

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