India witnessed a record-breaking surge in initial public offerings (IPOs) in 2024, raising an unprecedented $19.82 billion in what has also catapulted seven entrepreneurs into the billionaire league.
The boom was particularly notable in the renewable energy sector, with four entrepreneurs in the sector seeing their personal fortunes spike after the listing of their companies on the bourses.
These include Chiranjeev Singh Saluja of Premier Energies, India’s second-largest fully integrated Solar Cell and Solar Module manufacturer, Hitech C Doshi of the Waaree Group, which also makes solar modules, Bhavish Aggarwal of electric vehicle maker Ola Electric Mobility Ltd and Manoj K Upadhyaya of solar energy generator Acme Solar Holdings Ltd.
CompanyMarket ValuePromotersNet WorthWaaree Energies$10.6 BnHitesh C Doshi and Family$7.1 BnPremier Energies$7.3 BnChiranjiv Singh Saluja and Family$4.7 BnOla Electric Mobility$5.0 BnBhavish Aggarwal$2.8 BnEmcure Pharmaceuticals$3.1 BnSatish R Mehta$2.3 BnAcme Solar Holdings$1.9 BnManoj Kumar Upadhyay and Family$1.6 BnJyoti CNC Automation$3.5 BnParakramsinh Jadeja$1.6 BnAllied Blenders & Distillers$1.3 BnKishore Chhabria and Family$1.0 BnSource: Bloomberg’s Billionaire Index.
Premier Energies IPO births a new billionaire
“My father was in the business of supplying hand pumps to rural villages,” 51-year-old Saluja said in an interview, as reported by Bloomberg.
“He saw that access to electricity was sparse in those areas, so he started Premier Solar in 1995,” Saluja said.
Thirty years later, Saluja’s company is only behind the Adani group in producing solar cells and modules, and with government’s investments in solar energy driving optimism among investors, Premier’s share price has increased by over 58% since its debut in September.
The company had listed to 120% premium to its IPO price.
Saluja, however, believes it could be a double-edged sword with manufacturing capacities in the space rising rapidly within the next 18-24 months.
“There is definitely going to be consolidation in the sector, so only those who scale up will survive,” Saluja said.
Indian IPO market on a high
India’s IPO market enjoyed a blockbuster year, with funds raised more than doubling from 2023’s 650 billion rupees.
This growth was fuelled by a surge in market participation, as the number of unique investors on the country’s main bourse jumped 27% to 109 million.
The success has set the stage for another dynamic year in 2025, with 85 companies preparing to list, aiming to raise a collective 1.53 trillion rupees ($18 billion).
The IPO pipeline is diverse, with major players like Zepto, Flipkart India, Pine Labs, and PayU expected to debut.
Additionally, Mukesh Ambani’s Reliance Industries is likely to list its retail and telecom units separately, marking significant developments in the corporate landscape.
Small entrepreneurs also seizing the moment
While large corporations dominate headlines, small and medium enterprises have quietly reshaped India’s IPO market.
Over the last three years, nearly 90% of IPOs raised less than $100 million, according to data compiled by Bloomberg.
Source: NDTV Profit
Vishnu Agarwal, chief executive officer of Stock Knocks, a Kolkata-based investment research company, says,
Founders have realized that its better to own 75% of a $100 million company listed on the exchanges than own 100% of a $10 million company.
Will the IPO frenzy continue in 2025?
However, despite the optimism, 2025’s IPO market also faces potential turbulence.
Fund manager Kunal Rambhia says global tensions, a volatile rupee, and weak corporate profits could temper enthusiasm.
“The IPO trend will continue for the first half of 2025, but could slowdown in the second. Startups and tech-companies will find it harder to list, particularly in the second half because there could be a liquidity crunch,” he said.
On the other hand, the vast inflow of domestic capital into equities may help steady the ship in turbulent times, as they have last year in the face of FIIs pulling away from Indian markets in droves.
“The Indian IPO market is no longer dependent on foreign investors as domestic investors and domestic institutions have enough money,” said Himanshu Kohli, co-founder of Client Associates, a multi-family office and private wealth adviser managing over $6 billion in assets.
Private equity firms and family offices have moved a huge amount of money into unlisted shares and pre-IPO companies over the last year in anticipation of a successful exit in 2025.
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