India outpaces US in IPO listings with 36% global share in July-September period
India has emerged as a dominant force in the global IPO market, capturing 36% of total listings in the third quarter of 2024, significantly outpacing the US, which held a 13% share, according to a report released by EY India.
The impressive performance of India’s IPO market is further highlighted by a year-to-date return of 65.3%, far exceeding the BSE Sensex’s return of 14.9%.
In Q3 2024, the Indian main market saw 27 IPOs, a substantial increase from 13 in the previous quarter. The total proceeds from these listings reached $4.285 billion, compared to $1.992 billion in Q2 2024, marking a 115% increase in funds raised and a 108% rise in the number of deals.
Additionally, the SME segment raised $398 million through 84 IPOs in Q3 2024, up from $208 million via 60 IPOs in Q2 2023. This surge underscores that Indian stock exchanges have achieved their highest quarterly listings in two decades, solidifying their status as global leaders in IPO activity.
Prashant Singhal, India Markets Leader at EY India, noted, “The remarkable momentum in India’s IPO market reflects the increasing maturity of our capital markets and growing investor confidence. With strong participation from both domestic and international investors, India is establishing itself as a preferred destination for companies looking to go public.”
The consumer retail, diversified industrial, real estate, hospitality, and construction sectors are driving IPO activity across both main and SME markets.
A favorable macroeconomic environment is also contributing to this growth, with interest rates projected to moderate to 6.2% by 2025 and inflation expected to ease to 4.5%.
Looking ahead, the rise in filings, along with robust performance in the secondary market, suggests continued momentum in India’s IPO landscape.
