In a landmark year for Indian capital markets, companies raised an unprecedented Rs 1.6 lakh crore through Initial Public Offerings (IPOs) in 2024, setting new benchmarks for corporate fundraising and market participation. The surge in IPO activity has created ripple effects across regional markets, including Tamil Nadu, where several companies are now positioning themselves for public listings in 2025.
This exceptional performance, which saw 90 companies successfully launching their IPOs, represents a dramatic increase from the Rs 49,436 crore raised by 57 companies in 2023. The average issue size more than doubled to Rs 1,700 crore in 2024, up from Rs 867 crore in the previous year, indicating growing confidence in the market’s appetite for larger offerings.
Leading the charge was Hyundai Motor India’s historic Rs 27,870 crore IPO, the largest in the country’s history. The success of this offering, particularly significant for Tamil Nadu where Hyundai has major manufacturing operations, has encouraged other regional companies to consider public listings.
“Rising retail participation, strong domestic inflows, and active FPI participation have collectively laid a strong foundation for the fundraising momentum in India,” explains V Prashant Rao, Director and Head of ECM at Anand Rathi Advisors. This optimism is reflected in Tamil Nadu’s business community, where several mid-sized manufacturing and technology companies are preparing for potential market debuts.
The outlook for 2025 appears even more promising, with market experts projecting fundraising to exceed Rs 2.5 lakh crore. “Based on 75 IPO documents at various stages of approval and marketing, we anticipate unprecedented activity in the coming year,” notes Munish Aggarwal, Managing Director at Equirus.
For Tamil Nadu’s startup ecosystem, the IPO boom has created new opportunities and challenges. Several Chennai-based technology firms and manufacturing companies are among those preparing for public offerings in 2025. The state’s strong manufacturing base and growing technology sector have positioned local companies to capitalize on investor interest in these sectors.
Particularly noteworthy is the surge in SME listings, with 238 small and medium enterprises raising Rs 8,700 crore in 2024, nearly doubling the previous year’s figures. This trend has special significance for Tamil Nadu’s industrial clusters in cities like Coimbatore, Hosur, and Madurai, where numerous SMEs are exploring public listing options.
“The resurgence of manufacturing and increased private capital expenditure are key contributors as companies look to fund expansion and modernisation,” says Neha Agrawal, MD & Head of Equity Capital Markets at JM Financial Institutional Securities. This trend aligns well with Tamil Nadu’s industrial policy, which aims to strengthen the state’s manufacturing capabilities.
The robust IPO market has also attracted attention from Tamil Nadu’s traditional business houses looking to unlock value through public offerings. Several family-owned businesses in the state are reportedly consulting with investment bankers to explore potential listings, particularly in sectors like auto components, textiles, and engineering.
For the state’s startup ecosystem, the successful IPOs of technology companies like Swiggy have provided a blueprint for scaling and going public. Chennai’s SaaS and deep-tech startups are closely watching these developments, with several planning to initiate their IPO journeys in the coming years.
The market’s strength is evident in the exceptional subscription rates and listing day performances. Over 60 companies delivered positive returns on their debut, with some achieving gains exceeding 100%. This success has encouraged more companies, including several from Tamil Nadu, to consider the IPO route for their next phase of growth.
As India’s equity markets continue to reach new highs, with the NSE Nifty 50 touching 26,216 points and BSE Sensex reaching 85,836 points in September 2024, the stage is set for an even more dynamic IPO market in 2025, with Tamil Nadu’s companies poised to play a significant role in this growth story.
