India surpasses US in IPO listings with 36% global market share in Q3 2024

India outpaces US in IPO listing

India has emerged as a leader in the global initial public offering (IPO) landscape, capturing a remarkable 36% share of total listings in the third quarter of 2024, according to a report released by EY India. This performance significantly outpaced the United States, which accounted for only 13% of the global IPO market during the same period.

The Indian IPO market’s impressive showing is further underscored by year-to-date returns of 65.3%, vastly exceeding the BSE Sensex‘s 14.9% return. The third quarter alone witnessed 27 IPOs in the Indian main market, a notable increase from 13 in the previous quarter. Proceeds raised in Q3 2024 totaled $4.285 billion, reflecting a substantial 115% increase compared to $1.992 billion in Q2 2024.

In addition, the small and medium enterprises (SME) segment raised $398 million through 84 IPOs during Q3 2024, compared to $208 million from 60 IPOs in Q2 2023. This surge marks the highest quarterly listings for Indian stock exchanges in two decades, solidifying the country’s position as a global leader in IPO activity.

Prashant Singhal, India Markets Leader at EY India, attributed this remarkable momentum to the growing maturity of India’s capital markets and increasing investor confidence. “As we continue to see strong participation from both domestic and international investors, India is cementing its position as a preferred destination for companies seeking to go public,” he noted.

Sectors such as consumer retail, diversified industrial products, real estate, hospitality, and construction have been at the forefront of this IPO activity. Favorable macroeconomic conditions, including expected moderation in interest rates to 6.2% by 2025 and a projected easing of inflation to 4.5%, are anticipated to further boost IPO activity.

Looking ahead, the surge in IPO filings, combined with robust secondary market performance, indicates a sustained momentum in India’s thriving IPO market.

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