2024 has proved to be a historic year for the Indian stock market. This year companies have so far raised capital of more than Rs 3 lakh crore, which is a record. Earlier this figure was Rs 1.88 lakh crore in 2021. This year's growth has excited investors, and its direct impact is visible in the equity market.

Initial Public Offering (IPO) performed well

So far this year, 90 companies have raised Rs 1.62 lakh crore through Initial Public Offering (IPO). This figure is 2.2 times more than last year's Rs 49,436 crore. Notably, the amount raised from new issues in 2024 was around Rs 70,000 crore, while in 2021 it was Rs 43,300 crore. This year's issue has further increased the expectations of investors.

Raising large funds from QIP

Qualified Institutional Placement (QIP) has also become an important route this year. 88 companies have raised Rs 1.3 lakh crore through QIP. This is much more than the amount of Rs 80,816 crore raised in 2020, breaking the previous record. QIP has gained a lot of attraction from investors and has become a major means of raising capital for companies.

Rights issue also emerged

Companies are also raising huge amounts through rights issue. This year 20 companies have raised around Rs 18,000 crore, which is much more than last year's Rs 7,266 crore. In 2022, this figure was Rs 3,884 crore. The increasing use of rights issue is helping companies to meet their capital needs.

Economic growth rate and rising investor confidence

A major reason for raising large amounts of capital from the stock market in 2024 is the increasing growth rate of the Indian economy. The growth rate of the Indian economy was 8.2 percent in 2023-24. It is estimated to be 6.6 percent in the current financial year. Apart from this, the increasing confidence of investors in the equity market is also motivating companies to raise funds.

The figure will increase further in the last two weeks

More companies may come to raise capital from the stock market in the last two weeks of 2024. IPOs of DAM Capital Advisors, Ventive Hospitality, and other companies are going to open during this period, due to which this figure may increase further.

It is worth noting that the process of raising capital by Indian companies is continuously increasing in 2024. The strength of the economy and the confidence of investors have accelerated this process, giving the Indian stock market an opportunity to prosper more.