Indian companies raised record-breaking funds in FY25 through equity and debt, even as markets faced ups and downs. According to a report by PRIME Database, the total amount raised through public equity jumped by an impressive 92 percent to Rs 3.71 lakh crore. When rights issues were included, this figure grew to nearly Rs 3.88 lakh crore.
Debt fundraising also set new records, reaching Rs 11.12 lakh crore, with most of the funds raised through private placements. This shows that despite some market fluctuations, companies found ways to secure capital to support their growth and expansion.
Strong IPO Market Performance
Indian companies performed exceptionally well during FY25 in the IPO (Initial Public Offering) market. 78 companies raised Rs 1.62 lakh crore through mainboard IPOs, marking the highest-ever annual fundraising in India’s history. This amount was over 2.5 times higher than the Rs 61,922 crore raised in the previous financial year.
The largest IPO during the year came from Hyundai Motor India Limited, which raised Rs 27,859 crore. Swiggy followed with an IPO worth Rs 11,327 crore, and NTPC Green Energy raised Rs 10,000 crore. These large IPOs helped boost overall market activity and attracted significant interest from investors.
The IPO pipeline for the future also looks promising. Currently, 49 companies have already received SEBI approval to raise Rs 84,000 crore, while 67 more are awaiting clearance to raise an additional Rs 1.02 lakh crore.
New-age technology companies, which had slowed down in previous years, made a strong return in FY25. Eight tech firms collectively raised Rs 21,438 crore, a massive jump compared to Rs 3,040 crore in 2022-23 and Rs 5,544 crore in 2021-22. This indicates growing confidence in the tech sector’s potential.
High Investor Interest and Returns
Investor enthusiasm remained strong, with 56 IPOs receiving more than 10 times the number of subscriptions. Out of these, 33 IPOs were oversubscribed by more than 50 times, reflecting high demand from retail and institutional investors.
Retail investor participation also grew significantly, with the average number of applications rising to 21.33 lakh, compared to 13.15 lakh in the previous year. This increase in retail interest played a key role in driving IPO success.
IPO listings delivered solid returns for investors, with the average listing gain rising to 30 percent, slightly higher than the 29 percent gain recorded in the previous year. Additionally, nearly 46 IPOs are still trading above their issue price, offering an average return of 15 percent, even after market corrections in the second half of the year.
Foreign and Institutional Investors
Foreign portfolio investors (FPIs) played an important role in IPO allocations, securing 16 percent of shares through anchor investments. Mutual funds also had a notable share, taking up 13 percent of the allocations. Overall, Qualified Institutional Buyers (QIBs) accounted for 67 percent of the total amount raised through public issues.
The SME IPO segment also saw strong growth during FY25. A total of 235 small and medium enterprises raised Rs 9,133 crore, which marked a 53 percent increase from the previous year. Retail investors showed high interest in SME IPOs, with average oversubscription reaching an impressive 233 times.
Debt fundraising remained steady, with Rs 8,044 crore raised through public bonds. However, the majority of debt issuances continued to happen through private placements. Offer-for-sale (OFS) transactions also increased by 29 percent, reaching Rs 30,741 crore. Government divestments contributed Rs 4,359 crore to this total.
Qualified Institutional Placements (QIPs) more than doubled during FY25, with 91 companies raising Rs 1.43 lakh crore. This trend highlights growing confidence among institutional investors and businesses seeking to raise additional capital.
