Equity Funding In India On Rise, Capex To Grow 10%: Report
India's primary market anticipates a bustling period ahead, with 55 companies planning to raise over Rs 68,000 crore via initial public offerings
Due to record surplus transfer by the Reserve Bank of India and higher tax revenue, India is likely to increase its capital expenditure (capex) by eight to ten per cent for the financial year (FY) 2025, according to the quarterly report by Pantomath Group.
The country is also set to become the new equity funding frontier for global corporations as the primary market is anticipating a bustling period with 55 companies planning to raise over Rs 68,000 crore via initial public offerings (IPOs), the report revealed.
Pantomath Group, in its report titled ‘Market Kaleidoscope: Quarterly Market Insights’, stated that the Indian market remained positive for the first quarter of FY2025 followed by a strong earning season of Q4FY24. India's corporate growth in the current fiscal year (FY25) is expected to be healthy given peaking interest rates and the expected continuity of government policies, as per the report.
India reached a major milestone as the total market capitalisation of all stocks listed on BSE briefly surpassed USD 5 trillion for the first time, making it the fifth country after the US, China, Japan, and Hong Kong to achieve this feat.
Due to a substantial increase in the number of companies seeking to list their shares on the stock exchange, the Indian IPO market has witnessed growth in recent times, as per the report. There were 35 mainboard IPOs in the first half of 2025 that raised around Rs 32,000 crore, subscribed average of 61 times.
“Favourable market conditions, high liquidity, a conducive growth environment with stable interest rates, and benign inflation have facilitated a boom in the IPO market,” Mahavir Lunawat, Managing Director, Pantomath Capital Advisors said.
As far as the sectoral growth is concerned, the sugar sector remains in focus due to the government's emphasis on increasing ethanol production, aiming for a 20 per cent blending target by 2026. Driven by government policies and urbanisation, the country’s real estate market is also set for robust growth, requiring Rs 14 lakh crore in debt financing from 2024 to 2026.
In the cement sector, big players are expanding through inorganic acquisitions, expecting 6 to 7 per cent compounded growth in the coming years. FMCG companies are providing positive guidance for at least the next two quarters, based on factors like a normal monsoon, robust rabi crop and an increase in MSP.
Deena Mehta, Managing Director, Asit C Mehta Investment Interrmediates (ACMIIL) said, “Corporate earnings growth momentum, Strong GST collection, Capex cycle revival, Strong credit growth, strong domestic demand environments, Positive global market trends are the positive factors for the overall GDP growth of the economy.”
As per the report, electric two, three and four-wheelers are expected to be supported under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which could receive a budgetary allocation of about Rs 10,000 crore.
Talking about the policies of the RBI, Devang Shah, Head Retail Research, ACMIIL, said, “The proactive policies by RBI are beneficiary for banks for any kind of unexpected domestic & global financial risks. The Companies are also in a sound position to boost investments. These all factors are also indicating medium to long term GDP growth of the country.”
Overall, a stronger CY25 for the IPO market is anticipated, with increased activity, potentially larger deals, and new listings across diverse sectors, according to the report.
