Kotak Mahindra expects Indian IPO market to reach $35B in 2025
Digital tech companies are expected to raise $5 billion in 2025 through IPO.
Kotak Mahindra Capital Company (KMCC) on Friday pegged the overall initial public offer (IPO) market pipeline at $35 billion for 2025.
This will be a substantial jump from the $22 billion, which companies raised in the just concluded 2024, the company said.
A bulk of $9 billion of the IPOs in the pipeline are from the financial services sector, the i-bank said, adding that these include HDB Financial Services, Avanse Financial Services, and also Tata Capital.
Digital tech companies follow suit with $5 billion in the IPO pipeline, with names like Ecom Express, Ola, Zepto, and Pepperfry expected to hit the markets.
The company said the IPO sizes are increasing consistently, and candidates are looking at IPO as a source of funding for their investments.
The average listing day premium for the 91 IPOs, which hit the market in 2024, was 32.8%, it added.
It said foreign portfolio investors are relying on IPOs to invest in India and preferring it over the secondary market route.
The success of Hyundai's mega Rs 27,000 crore offer has prompted many multinationals to look at unlocking the value of their investments through the IPO route, it noted.
The year 2024 was positive for the Indian startup ecosystem with 13 companies going the IPO route. It was also successful in how the shares of these companies were trading after their listing on the stock exchanges. All the companies are trading above their IPO price with the exception of Ola Electric.