Pantomath Group’s report predicts record-breaking IPO fundraising in 2025, exceeding Rs. 2 lakh crore

Mumbai: Pantomath Group, a leading financial services conglomerate, has released its highly anticipated report—“What 2024 Gave: What 2025 Brings in Store”—highlighting key economic and market trends, sectoral performance, and projections for the Indian and global economies.

The report outlines India’s stellar economic growth, sectoral advancements, and IPO market dominance, positioning the country as a global economic powerhouse.

IPO Boom: India Leads Global Markets in Fundraising
Global IPO Market Landscape (2024)
The global IPO market recorded 1,215 deals raising US$121.2 billion, slightly below 2023 levels. However, the second half of 2024 witnessed improved performance, with the US reclaiming the top spot for IPO proceeds and a record 55% participation from foreign issuers.

India’s Record-Breaking IPO Performance:
India emerged as the leader in IPO volume, hosting twice as many IPOs as the US and 2.5 times more than Europe.
• 76 companies raised Rs. 1.3 trillion in the first 11 months of 2024
• Favorable regulatory reforms and investor confidence fueled market momentum, even during downturns.

Primary Market Outlook for 2025:
• 34 companies have SEBI approvals to raise Rs. 41,462 crore.
• 55 firms await clearance for Rs. 98,672 crore, with 143 DRHPs filed in 2024, compared to 84 in 2023 and 89 in 2022.
Mr Mahavir Lunawat, Managing Director of Pantomath Capital, India’s leading mid-market investment bank, said, “Multinational corporations have demonstrated the strategic advantages of listing in India. Factors such as reduced capital costs, wide consumer market, robust regulatory regime, encourage global players to consider Indian markets for their equity offerings. Increasing participation of multinational corporations on Indian Exchanges adds a new dimension to Indian capital market.”

A Resilient Capital Market
Pantomath’s report predicts record-breaking IPO fundraising in 2025, exceeding Rs. 2 lakh crore.

Mr Lunawat further added, “In our Recap 2024. Crystal Gaze 2025 report, Pantomath was the first to anticipate that IPO fundraising in FY25 would surpass Rs 1 lakh crore—a target that has already been exceeded well ahead of expectations. With the continued momentum in the markets, we now project that equity raised through IPOs will cross Rs 2 lakh crore in the year 2025. This milestone is a testament to the resilience of India’s capital markets, the confidence of investors, and the critical role IPOs play in fueling economic growth.”

QIPs showing a healthy pickup; funds raised via QIPs at an all-time high QIPs have surged in 2024, with capital raised through 91 QIPs reaching a record high of Rs 1,29,200 Cr (2.5x of CY23) so far this year (previous year: 43 QIPs). This figure has surpassed the previous year’s total of Rs 52,300 Cr, and marks the highest amount to date, exceeding the previous peak of Rs 80,500 Crs in CY20.

The year was dominated by the Real Estate, Utilities, Automobiles, Metals, and PSU Banks sectors, which collectively accounted for 57% of the total QIP issuances thus far. Of the 91 issues, six have delivered returns exceeding 100% over their issue prices. More than two-thirds of the stocks have delivered positive returns against their issue prices.

India’s Economic Surge: Key Highlights of 2024

• India’s equity markets soared to record highs, firmly establishing the nation with a market capitalization of $5.29 trillion which is 4th largest market cap globally after United States, China and Japan.
• Benchmark indices Nifty and Sensex hit all-time highs of 26,277.35 and 85,978.25, respectively.
• GDP growth stood at 8.2% in FY24, surpassing expectations, although inflation and weak consumption slowed growth in first half of FY25. A rebound is anticipated, driven by government spending, private investments, and Rural Growth Revival.
• India surpassed the US and Europe to claim the top spot in global IPO volumes, further cementing its economic resilience.

Ms Madhu Lunawat, CIO & Fund Manager, Bharat Value Fund, said, “There are many opportunities available for both domestic and global Investors such as AIF, PMS, Mutual Funds, etc. for medium-term investments perspectives, to participate in India’s long term growth story. The investor’s preference towards equity as an investment avenue based on their Risk appetite is constantly increasing in the last couple of years as compared to earlier. Such kind of Sustainable fund flow from different investors is a positive sign and this liquidity will help market to support in any kind of correction or declines.”

Snapshot of Sectoral Outlook

Telecom:
• Nationwide 5G rollout was completed with a Rs. 116,342 crore allocation in union Budget 2024-2025 to promote sector growth.
• Indian Telecom operators have raised Tariff by10–25% to boost cash flows, enabling investment in 5G cell sites and further network upgrades.
Agriculture:
• The Indian agriculture sector is set for growth, driven by the Vision 2047 roadmap that promotes sustainable farming, crop diversification (especially millets), and climate-resilient seeds.
Railways:
• With a Rs. 2.52 lakh crore allocation, plans include the production of 1,500 locomotives and 8,145 coaches, alongside metro expansions across 20+ cities.
Automobile:
• The sector grew 10% to Rs. 6.14 lakh crore, with a sharp focus on EV adoption and exports projected at US$ 30 billion by FY26.
Information Technology:
• Projected to reach US$ 350 billion by 2026, the sector saw growth fueled by AI, cloud computing, and the IndiaAI Mission.
Renewable Energy:
• India remains committed to net-zero emissions by 2070 and 50% renewable energy by 2030, supported by the National Green Hydrogen Mission and 100% FDI in renewables.
Read the report for more insights on sectors.
“Indian corporate earnings are expected to show further improvement after a lackluster last quarter. The Capex spending by government will lead to revival in overall GDP growth and companies benefiting from a softening in commodity prices, leading to enhanced profitability and margins. Companies are expected to continue strong performance in the upcoming quarters, driven by a robust domestic demand environment, positive macroeconomic factors and private capex revival.” Stated Mr Devang Shah, Head Retail Research, ACMIIL

Looking Ahead: India’s Economic Roadmap for 2025
India’s rise from the 10th largest economy with USD 1.9 trillion GDP to the 5th largest with USD 3.7 trillion GDP in FY24 underscores its potential. By 2027, India is projected to achieve a USD 5 trillion GDP, setting sights on USD 7 trillion by 2030 and a developed nation status by 2047.

Key growth drivers include:
• Industrial and Infrastructure Growth and Private Capex Revival.
• Sustainable GDP growth in coming years, driven by strong domestic demand environment.
• Corporate earnings recovery powered by government capital expenditure and lower commodity prices.
• Fiscal deficit targets of 4.9% in FY25 and 4.5% in FY26, supported by strong revenue collections and RBI dividends.
• India’s role in the China+1 strategy, enhancing global supply chain dominance and boosting exports.