India has taken the lead in the global IPO landscape, securing a 36% share of total listings in Q3 2024, significantly surpassing the United States, which held a 13% share.

What Happened: India recorded the highest quarterly listings in the third quarter over the past 20 years, according to a report by Ernst & Young India. The main market recorded 27 IPOs showing a 29% increase from Q3 2023, raising $4,285 million (₹36,027 crore), a substantial 142% increase from the same period the previous year. Compared to the last quarter, Q3 saw a 115% increase in funds raised and a 108% rise in the number of deals

The small and medium enterprise segment also demonstrated robust growth with 84 IPOs, raising $398 million (₹3,346 crore). India’s supremacy in the global IPO landscape is further underscored by IPO returns of 65.3% year to date, outstripping the BSE Sensex’s 14.9% return.

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Prominent IPOs of the quarter included Bajaj Housing Finance, Ola Electric Mobility and First Cry, the report said. Consumer retail products, diversified industrial products, real estate, hospitality and construction sectors spearheaded the IPO activity.

“The remarkable momentum in India’s IPO market reflects the increasing maturity of our capital markets and growing investor confidence,” stated Prashant Singhal, India Markets Leader at EY India.

The favourable macro environment, marked by anticipated moderation in interest rates and easing inflation, has created strong tailwinds for IPO activity, EY Indian noted. The robust performance of mid- and small-cap stocks has motivated more unlisted companies to consider public listings.

Looking forward, the IPO landscape seems increasingly promising with several major companies like Swiggy receiving listing approvals, according to the report.

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