Indian Companies Raise Record Funds Through Equity And Debt In FY25: Report

(MENAFN- IANS) Mumbai, March 27 (IANS) Indian corporates raised record-high funds through equity and debt in the financial year 2024-25, despite market fluctuations, a new report said on Thursday.

A report by PRIME Database showed that the public equity fundraising surged by 92 per cent to Rs 3.71 lakh crore.

When rights issues were included, the total amount reached nearly Rs 3.88 lakh crore. Debt fundraising also set a new record, touching Rs 11.12 lakh crore, mainly through private placements.

The IPO market remained strong, with 78 companies raising Rs 1.62 lakh crore through mainboard IPOs, the highest-ever annual fundraising.

This was more than 2.5 times the Rs 61,922 crore raised in the previous year. Hyundai Motor India Limited led with the largest IPO of Rs 27,859 crore, followed by Swiggy at Rs 11,327 crore, and NTPC Green Energy at Rs 10,000 crore.

The IPO pipeline remains strong, with 49 companies already having the SEBI approval to raise Rs 84,000 crore, while 67 more await clearance for Rs 1.02 lakh crore.

New-age technology companies made a strong comeback, with eight firms collectively raising Rs 21,438 crore. This was a significant jump from Rs 3,040 crore in 2022-23 and Rs 5,544 crore in 2021-22.

Investor enthusiasm remained high, with 56 IPOs receiving subscriptions of over 10 times, and 33 of them exceeding 50 times.

Retail investor interest also surged, with the average number of applications rising to 21.33 lakh in 2024-25, compared to 13.15 lakh last year.

IPO listings delivered strong returns, with the average listing gain increasing to 30 per cent from 29 per cent in the previous year.

Nearly 46 IPOs continue to trade above their issue price, offering an average return of 15 per cent despite market corrections in the latter half of the year.

Foreign portfolio investors played a key role in IPO allocations, accounting for 16 per cent through anchor investments, while mutual funds took up 13 per cent.

Overall, Qualified Institutional Buyers (QIBs) secured 67 per cent of the total public issue amount.

The SME IPO segment also saw strong growth, with 235 small and medium enterprises raising Rs 9,133 crore, a 53 per cent increase from last year.

Retail investors showed high interest in SME IPOs, with average oversubscription reaching 233 times.

Offer-for-sale (OFS) transactions increased by 29 per cent to Rs 30,741 crore, with government divestments contributing Rs 4,359 crore.

Qualified institutional placements (QIPs) more than doubled, with 91 companies raising Rs 1.43 lakh crore.

Debt fundraising remained strong, with Rs 8,044 crore raised through public bonds, while the majority of debt issuances were done through private placements.

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