Indian investors and brokers gather in a bustling financial institution, observing market data.
India’s primary market has kicked off 2024 with impressive momentum, as Initial Public Offerings (IPOs) successfully raised $2.5 billion in the first quarter. This surge marks a 7.8% year-on-year increase, making it the most robust Q1 performance since 2018. According to a report by the London Stock Exchange Group (LSEG), India now accounts for approximately 8% of total worldwide IPO proceeds, solidifying its status as a key global IPO destination.
Follow-on offerings played a significant role, contributing 58% of the total proceeds. Financial companies led the fundraising efforts, securing $1.2 billion, supported by transactions such as the Raajmarg Infra Investment Trust IPO. The energy and power sector followed, raising $1.0 billion, a 127% increase compared to the previous year. Retail activity nearly tripled, reaching $893.4 million and capturing 15.1% of the market share.
Despite the IPO market’s strong showing, overall dealmaking in India experienced a slowdown. Mergers and acquisitions (M&A) involving Indian entities declined by 44.5% year-on-year to $17.4 billion. Bond issuances by Indian entities amounted to $19.5 billion, a 39% decrease, marking the weakest first quarter in a decade. Financial institutions dominated bond fundraising, accounting for over 70% of the total issuance.
Elaine Tan, Senior Manager at LSEG Deals Intelligence, noted a cautious start to the year for dealmaking in India, citing a slowdown in M&A volumes and large transactions. Dealmakers are prioritizing scale, AI adoption, domestic consolidation, and portfolio divestitures amid market uncertainty.
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