India grew by 38 percent in M&A activity, which grew to $109 billion in CY24 from $79 billion in the previous year, reflecting strong investor confidence. After a brief slowdown last year, Indian conglomerates are again focusing on diversification and strategic expansion with significant activity across sectors, with their transaction contribution doubling from $26 billion in the previous year to $48 billion in CY24, the managing director said. Jayasankar said. Kotak Investment Bank.
CY24 was the highest ever fundraising in the history of Indian equity capital markets at $74 billion and this momentum is expected to continue with an IPO pipeline of $35 billion, the bank said. Companies continue to consider IPOs as a source of funding, with 40 percent of primary funding coming from IPOs. According to the investment bank, unlike global capital markets such as the US, which are often dominated by a few key industries such as technology, healthcare or financial services, India's fundraising activity is significantly broad-based, spanning all sectors.
It also highlighted how the domestic capital pool provides stability to volatility in FII flows. According to the bank's report, domestic investors contributed a total of $62 billion, of which 50 percent came from SIPs, compared to $0.4 billion from FIIs in CY24. Also, demat accounts increased to 18 crore by October 2024, primarily from non-traditional states like Bihar, Uttar Pradesh, Madhya Pradesh. India's equity capital market showed strong performance across all major sectors with small, mid and large diversified market returns. cap companies. IPOs in CY24 delivered robust returns of 32.8 percent on average.
Another trend observed by the bank was MNC companies preferring India as a listing destination, listing their Indian subsidiaries or shifting their corporate office to India or consolidating their global businesses under one Indian entity for listing. Sales decline in CY24. Hyundai's success has prompted multiple MNC conglomerates to consider unlocking value through Indian IPOs. Hence, MNCs are increasingly looking at the Indian public markets as a viable monetization avenue.
The $3.3 billion Hyundai Motor India IPO was India's largest IPO till date. Hyundai shares debuted on the Indian stock exchange in October last year, listing on the BSE at Rs 1,931 a share, a 1.5 percent discount to the issue price of Rs 1,960 a share. Currently, Hyundai shares are trading at Rs 1,787 on the BSE.