Indian firms raise bumper funds from equity market in 2024, set new records

Mumbai, Dec 24: The year 2024 has been a historic one for the Indian stock market. Corporates raised bumper funds from investors through initial public offerings (IPOs), follow-on public offers (FPOs), qualified institutional placements (QIPs) and rights issues, and set several new records. In 2024, domestic companies raised Rs 1.64 lakh crore through 90 IPOs.

During this period, shares worth Rs 1.39 lakh crore were sold to institutional investors. This is the highest figure ever for raising capital through public issues. In 2021, companies raised the highest amount of Rs 1.18 lakh crore through IPOs. During this period, shares worth Rs 41,997 crore were sold by the companies to institutional investors.

So far this year, 20 companies have raised about Rs 18,000 crore through rights issues. Last year this figure was Rs 7,266 crore, and in 2022, it was Rs 3,884 crore. Due to the boom in the IPO market, in December 2024, about 15 companies are going to raise Rs 25,500 crore through public issues. The biggest ever IPO of the Indian stock market was launched by Hyundai Motor India. Its issue size was Rs 27,870 crore.

Earlier, LIC's public issue of Rs 21,008 crore in 2022 was the biggest IPO in the country so far. In 2024, Vibhor Steel Tube's IPO received the highest subscription of 320 times. Apart from this, IPOs like KRN Heat Exchanger & Refrigeration, Manba Finance, and Gala Precision Engineering got more than 200 times subscriptions.

Indian firms raised Rs 1.4 lakh crore this year through QIPs, the highest figure so far since 2020.

This year, Vedanta and Zomato have each raised Rs 8,500 crore through QIP. Apart from this, Adani Energy Solutions and Varun Beverage raised Rs 8,373 crore and Rs 7,500 crore, respectively. According to data from the National Securities Depository Ltd (NSDL), foreign investors invested around $14 billion in the primary markets this year, which is more than the previous record of 2021.