New Delhi
The year 2024 was the year of IPO. During this period, big companies like Hyundai Motors India, Bajaj Housing Finance, Swiggy, NTPC Green Energy and Ola Electric raised money from the market. With 8 IPOs opening this week, Indian companies have raised Rs 3 lakh crore this year from IPOs, Qualified Institutional Placements (QIP) and rights issues. This is 64% more than the previous record of Rs 1.88 lakh crore in 2021. Bankers say this trend is likely to continue in 2025 also. The country’s biggest IPO may hit the market next year. Know the complete details…
Pinak Bhattacharya, Head of Corporate Finance at IIFL Capital, said, “The significant amount raised by Indian companies in 2024 can be attributed to the favorable macroeconomic environment, strong equity markets and growing investor confidence driven by stable policies and growth. www.primedatabase.com According to the data, so far this year 90 companies have raised or announced Rs 1.62 lakh crore. This is 2.2 times more than last year’s Rs 49,436 crore.
Will the IPO boom continue?
India’s IPO boom is likely to continue till 2025. Next year, big companies like LG India and Flipkart are preparing to enter the market. According to Bloomberg, LG is considering increasing the valuation of its Indian unit to $15 billion. India’s largest e-commerce firm Flipkart is also preparing to launch an IPO next year. The valuation of the company is $36 billion. This could be one of the biggest issues in the country. The Walmart-owned firm has received internal approval to shift its address from Singapore to India. This is considered the first step towards IPO.
Besides, many big companies are also planning to list their subsidiary companies. These include HDFC Bank, Hero MotoCorp, Reliance Industries, Manappuram Finance, Muthoot Finance, Brigade Enterprises, Canara Bank and Greaves Cotton. Two weeks ago, the board of Greaves Cotton approved the IPO for its subsidiary Greaves Electric Mobility. Earlier, HDB Financial Services, the NBFC arm of HDFC Bank, had filed a draft red herring prospectus (DRHP) for a Rs 12,500 crore IPO. This is India’s largest NBFC offering.
biggest ipo
On October 31, Brigade Hotel Ventures, a wholly owned subsidiary of Brigade Enterprises, filed DRHP for a Rs 900 crore issue. In August, Hero Fincorp, the financial services arm of Hero MotoCorp, filed its DRHP for an IPO with a fresh issue of shares worth Rs 2,100 crore and an OFS of Rs 1,568 crore. The board of Canara Bank has approved the sale of 13% stake in its mutual fund arm, Canara Robeco, through a public offer. Reliance Industries and Tata Motors are also planning IPOs for their subsidiaries, Reliance Jio and Tata Passenger Electric Mobility, according to banking sources.
Hyundai Motor India’s Rs 27,870 crore IPO in the year 2024 became the largest IPO ever in the primary market of India. There may be an IPO in the year 2025 which can leave behind Hyundai Motor India’s record. According to Reuters, India and Asia’s richest man Mukesh Ambani may list his telecom business Jio this year. Its value is more than $100 billion. The IPO of Reliance’s retail company can also be launched later. Ambani had announced in 2019 that Reliance Jio and Reliance Retail would be listed within 5 years but after that he has not given any update on this.
What is the valuation?
In recent years, Ambani has raised about $25 billion from companies like KKR, General Atlantic and Abu Dhabi Investment Authority for digital, telecom and retail businesses. With this, the valuation of Jio and Reliance Retail has increased to more than $100 billion. According to Reuters, Reliance now plans to launch the IPO of Reliance Jio in 2025. He feels that it has now become a stable business and has achieved revenue flow. However, sources indicated that the timeline could change. Reliance aims to make the 2025 Jio IPO India’s biggest ever IPO.
