Indian companies have achieved a remarkable milestone in their fundraising efforts during the fiscal year 2024-25, reaching unprecedented levels for both debt and equity. This surge can be attributed to high valuations, which have opened up lucrative avenues for stake dilution, showcasing the resilience and potential of the Indian market.

Record-Breaking Equity Fundraising

According to recent insights from Prime Database, equity fundraising soared to an impressive ₹3,71,460 crore in 2024-25, marking a staggering 92% increase from the ₹1,90,104 crore raised in the previous fiscal year. When including rights issues amounting to ₹16,167 crore, particularly from InvITs and ReITs, the total equity fundraising approached ₹3.88 lakh crore.

• Equity Fundraising Highlights:
  • FY25 Total: ₹3,71,460 crore
  • Growth from FY24: 92%
  • Rights Issues: ₹16,167 crore

Debt Fundraising Reaches New Heights

In parallel, the debt fundraising landscape also set a record, reaching ₹11,12,375 crore. This total comprises ₹11,04,331 crore from private placements and ₹8,044 crore through public bonds, emphasizing strong investor confidence across the board.

• Debt Fundraising Snapshot:
  • Total for FY25: ₹11,12,375 crore
  • Private Placement: ₹11,04,331 crore
  • Public Bonds: ₹8,044 crore

Surge in IPO Activity

The report highlights that 78 companies raised a whopping ₹1,62,387 crore through main board initial public offerings (IPOs), more than doubling the ₹61,922 crore secured by 76 companies in the prior year. Notably, Pranav Haldea, Managing Director at PRIME Database Group, pointed out that new-age technology companies (NATCs) made a strong comeback, successfully launching 8 IPOs—including Awfis, Swiggy, and Digit Insurance—which collectively raised ₹21,438 crore.

• IPO Performance Overview:
  • Total IPOs in FY25: 78
  • Funds Raised: ₹1,62,387 crore
  • New Age Companies: 8 IPOs, ₹21,438 crore

Retail Investor Participation on the Rise

Retail investors have shown increased enthusiasm, with the average number of applications jumping to 21.33 lakh in 2024-25, compared to 13.15 lakh the previous year. This surge in interest correlates with strong listing performances, as 46 out of 78 IPOs are currently trading above their issue prices.

• Retail Investor Insights:
  • Average Applications: 21.33 lakh
  • IPOs Trading Above Issue Price: 46 out of 78
  • Average Return: 15%

Expert Opinions on Future Trends

Sorbh Gupta, Senior Fund Manager at Bajaj Finserv Asset Management, noted that banks faced challenges with credit offtake, largely due to companies successfully raising capital through equity and debt markets. He anticipates a more favorable environment in the second half of the upcoming fiscal year.

Ajit Mishra, Senior Vice President of Research at Religare Broking, attributed the record debt fundraising to lower yields and strong investor appetite, suggesting that both promoters and private equity firms have effectively leveraged market momentum to optimize their capital structures.

A Promising Pipeline Ahead

Looking forward, the fundraising pipeline remains robust. Currently, 49 companies with Sebi’s approvals are gearing up to raise approximately ₹84,000 crore, while another 67 companies await approval for nearly ₹1,02,000 crore. However, as Haldea indicated, recent market volatility has led many issuers to adopt a cautious, wait-and-see approach, with March marking the first month without mainboard IPOs since May 2023.

In conclusion, the unprecedented levels of fundraising in FY25 reflect the strong potential of the Indian market, with significant implications for future growth and investment opportunities. As market conditions evolve, the outlook remains optimistic for companies aiming to leverage capital markets for expansion and innovation.