India’s IPO Market Booms in 2024 with 272 Companies Going Public, SEBI Reports
New Delhi, India – India’s Initial Public Offering (IPO) market saw a significant rise in 2024, with a total of 272 companies going public compared to 164 during the previous fiscal year, according to a report by the Securities and Exchange Board of India (SEBI).
Key Drivers of the Surge
SEBI highlighted that the resurgence was driven by strong secondary markets, enthusiasm from retail investors, and robust institutional flows. “After a relative moderation during 2022-23, the equity segment witnessed a resurgence in fundraising activity during the current fiscal. The IPO market had been vibrant with a total of 272 companies going public as compared to 164 during the last fiscal year,” said SEBI.
Record Foreign Investment
The report also noted that India received the highest foreign investment in the year 2023-24, with investments reaching a new high of Rs 3.4 lakh crore, the highest since 1992-93. “Compared to net outflows of Rs 40,936 crore in 2022-23, FPIs invested Rs 3.4 lakh crore in India during 2023-24, which was the highest since 1992-93,” said SEBI.
Factors Attracting Foreign Investment
SEBI emphasized that Foreign Portfolio Investment (FPI) and foreign venture capital investment are crucial for emerging economies like India. FY 2023-24 was an exceptional year for India in terms of foreign portfolio investment flows. Factors such as India’s growth resilience, financial stability, controlled inflation, and fiscal consolidation attracted a record level of foreign flows to India.
Sector-wise FPI Investment
According to the sector-wise breakup on FPI investment, out of the consolidated Rs 64.2 lakh crore equity assets held by FPIs, Rs 18.6 lakh crore were invested in financial services, followed by oil, gas, and consumable fuels (Rs 6.0 lakh crore), information technology (Rs 5.9 lakh crore), and automobile and auto components with Rs 4.8 lakh crore invested.
Doubts Revealed
IPO -: IPO stands for Initial Public Offering. It is when a company sells its shares to the public for the first time.
SEBI -: SEBI stands for Securities and Exchange Board of India. It is the organization that regulates the stock market in India.
secondary markets -: Secondary markets are places where people buy and sell shares that have already been issued by companies. It is like a second-hand market for stocks.
retail investor -: A retail investor is an individual person who buys and sells stocks for themselves, not for a company or organization.
institutional flows -: Institutional flows refer to the large amounts of money that big organizations like banks and mutual funds invest in the stock market.
foreign investment -: Foreign investment is when people or companies from other countries put their money into businesses or stocks in India.
Rs 3.4 lakh crore -: Rs 3.4 lakh crore is a very large amount of money. One lakh crore is equal to 1 trillion rupees, so Rs 3.4 lakh crore is 3.4 trillion rupees.
FPI -: FPI stands for Foreign Portfolio Investment. It is when people or companies from other countries invest in stocks and bonds in India.
financial services -: Financial services include businesses like banks, insurance companies, and stock brokers that help people manage their money.
oil and gas -: Oil and gas refer to the industry that extracts and sells oil and natural gas, which are used for energy and fuel.
IT -: IT stands for Information Technology. It includes companies that work with computers, software, and the internet.
automobiles -: Automobiles are vehicles like cars, trucks, and motorcycles that people use for transportation.
