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Business Standard
4 hours ago
- Business
- Business Standard
IPO fundraising in 2021-25 crosses that of 2001-20, marking a milestone
The Indian capital markets are witnessing an epochal moment: capital raised via IPOs in the last five years (2021 to 2025 year to date) has crossed that raised in the 20 years prior (2001–2020). The growth in fundraising through IPOs (₹4 trillion raised in the last 4.5 years) has been driven by growing investor participation—both retail and institutional. The heft of institutional investors has been driven by domestic institutional investors such as mutual funds (MFs), which are currently managing assets of over ₹74.4 trillion. Equity-oriented schemes account for over 60% of these total assets under management. What's more, ₹27,000 crore comes every month by way of Systematic Investment Plan (SIP) contributions, driving further demand for new investable ideas that IPOs bring. On the supply side, we have been witnessing very high-quality businesses from across the country and from varying sectors tapping the IPO market to fund investments in differentiated high-growth businesses or to monetise and list the companies to recycle capital to drive further economic growth and create wealth for investors. The IPOs of the past 4.5 years have been a value creation platform for all stakeholders—institutional investors, HNIs, retail investors, employee/management shareholders of the companies, private equity investors, and the promoters themselves. The proof point is simple: IPOs floated from January 2021 till date have provided an average return of over 63% (current market prices vs IPO price), showing that not just the pre-IPO shareholders but also new ones have benefited in a classic win-win situation. Based on the current trends and the overall macro story of India—growth, governance, regulations, and opportunity—I believe that the next three years (i.e., at least until 2028) will be the golden era of fundraising in the Indian capital markets. At Equirus, we estimate that the fundraising in the next three years will exceed that of the last five by over 50%. The ₹6 trillion of productive capital being raised over the next three years will set off a virtuous cycle of generating good returns for existing investors, attracting further investments from households and global capital chasing returns, and will democratise entrepreneurship, removing capital as a constraint for India Inc to prove its might on the global stage. Unlisted corporates must take advantage of this golden era of fundraising to raise risk capital to double down on growth. Those enterprises that fail to do so will risk getting left behind by well-funded competitors who can invest in innovation and attract talent by giving them stock options. This is not an empty hypothesis. One can draw parallels from the world's largest and deepest capital market, the US. In the USA, between 2016 and 2021, $350 billion was raised via IPOs. Of this, a peak sum of $138 billion was raised in calendar year 2021 through 381 IPOs. Thereafter, the golden period ended, and fundraising nosedived. Calendar years 2022–2023 combined saw a fund raise of just 196 IPOs, raising about $27 billion. Faced with unfavourable market conditions, many firms postponed staying private longer (e.g., CoreWeave, Klarna, StubHub) but at the cost of missing peak valuations and public funding access. Case in point: Affirm Holdings, which chose to make an IPO debut in January 2021. The company's valuation has more than doubled—from $12 billion to $30 billion now. On the contrary, Klarna, which hit a valuation of $45.6 billion, did not—or wasn't able to—do an IPO, and saw its valuation crash to $6.5 billion. Another example is Instacart, which hit a private valuation of $39 billion in March 2021. Instacart too postponed its 2022 filing, eventually going public in 2023 at a much lower $9.3 billion valuation. Post-listing, however, the company's valuation zoomed above $14 billion. DoorDash, which went public at a $39 billion IPO valuation in 2020, was valued 91% higher on listing at more than $72 billion. The cost of not doing an IPO, apart from the loss in valuations, is also losing out on the crucial equity funds that allow companies to grow. This hurts even more if competitors raise funds and get the equity needed to grow their businesses. Over-reliance on debt can skew the capital structure of the business, leading to more leverage and interest costs. Missed liquidity events diminish employee morale—stock options lose meaning. Early investors (PE/VC) pressured to exit within 7–10 years need a timely public path. Delays can lead to strained relationships, down rounds, or forced M&A. Competitors who list earlier gain brand visibility, access to capital, and higher valuations. Latecomers may face tougher valuations in stale markets—and heightened scrutiny. India is in the midst of a rare IPO prime-time—driven by economic stability, investor appetite, regulatory support, and huge foreign capital inflows. As history shows—from the U.S. IPO hangover post-2021—missing a public window can cripple growth and delay expansion by years. For India's next-generation unicorns, the 2025–2028 window is a once-in-a-decade opportunity. Companies should move now lest they risk being locked out of the bright future that beckons those who act now. The author is Managing Director & Head of Investment Banking, Equirus Capital Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper.
Mint
2 days ago
- Business
- Mint
Bulls and bears clash at 25,200: Will Nifty break free?
Indian stocks could see more volatility this week as the Nifty struggled to hold above the 25,200 level last week. This key resistance has triggered a battle between bulls and bears, amid heavy selling by foreign investors. Bears concluded four straight weeks of negative closing last Friday— the Nifty fell by 3.12% from 27 June to 24,837 on 25 July— with heavy open interest accumulating at the 23,900 strike Nifty call option expiring this Thursday. At closing on Friday, bears raised open positions— outstanding sell positions— of the 24,900 call by a whopping 962% to 86,159 contracts (one contract comprises 75 shares). "The sale shows that bears are confident, at least for now, of the market remaining below 24,900 by the end of this month," said Kruti Shah, quant analyst at Equirus. High levels of call selling reflects trader anticipation of further cuts in the market while heavy put selling indicates bullishness. Shah said that any downside after four weeks of an 800 point fall would be restricted to 24,500-24,600 levels, given the huge support by DIIs (domestic institutional investors). "Unless the market breaks the 25,200 resistance convincingly, it faces the prospect of a further cut to 24,500/600, which are strong supports," added Shah. Chandan Taparia, derivatives and technical head of research, Motilal Oswal added that the index has repeatedly failed to hold above this level. 'My range for now is 24,500 to 22,500," he said. Three failed attempts Since hitting a multi-month low of 21,743 on 7 April, the Nifty has gained 14% to 24,837. But it has failed three times to sustain above 25,200; each time falling sharply afterward. On 15 May, it jumped to 25,116.25 but fell 654 points to 24,462 by 22 May. It then bounced back 698 points to close at 25,160.1 on 9 June, only to slip again—this time by 687 points—to 24,473 on 13 June. A final recovery took the index to 25,669 on 30 June, but by last Friday it had fallen sharply once again by 832 points to 24,837. India lags global peers Indian markets have underperformed most global peers this year, amid tepid earnings growth and high valuations, forcing FPIs to press the sell button in favour of other emerging markets. For instance, while the MSCI India Index delivered a gross return of 6.55% in the calendar year through June, other major Asian markets fared better. The MSCI China Index returned 17.46%, MSCI Korea surged 39.69%, and MSCI Taiwan gained 10.43% during the same period, according to MSCI data. "FPIs are selling India in favour of other EMs as our earnings growth though better than expected doesn't justify the relatively high valuations," explained SK Joshi, consultant at Khambatta Securities. After net buying shares worth ₹8,467 crore in India's cash market last month, FPIs turned net sellers, offloading ₹20,263 crore worth of equities in the month through 24 July, National Securities Depository Ltd (NSDL) data showed. The reversal coincides with tepid earnings momentum—while standalone profits for the June quarter rose 22% year-on-year to ₹1.49 trillion, sequential growth was a mere 0.24%, according to Capitaline.
Entrepreneur
17-07-2025
- Business
- Entrepreneur
Equirus Launches Offshore Small-Cap Fund from GIFT City for Global Investors
With a minimum investment requirement of USD 150,000, the fund focuses on listed small-cap companies in India that exhibit strong fundamentals, scalable business models, and high growth potential. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Equirus Asset Manager, part of the Equirus Group, has announced the launch of its latest investment vehicle, the 'Equirus Long Horizon Offshore Investments Fund.' Registered under the International Financial Services Centres Authority (IFSCA) as a Category III Alternative Investment Fund (AIF), the open-ended fund is based in GIFT City and is denominated in US dollars. It is tailored for global investors looking to tap into the long-term growth potential of Indian small-cap equities. With a minimum investment requirement of USD 150,000, the fund focuses on listed small-cap companies in India that exhibit strong fundamentals, scalable business models, and high growth potential. The fund is benchmark-agnostic and adopts a bottom-up, research-driven approach, emphasising disciplined investing and earnings-based stock selection. Sahil Shah, Chief Investment Officer at Equirus Asset Manager, highlighted, "India is entering a multi-decade growth cycle fueled by manufacturing momentum and a rising consumption-driven middle class. Small caps offer the most direct exposure to these trends. Our aim is to support high-quality businesses at pivotal stages in their growth journey." The fund is structured to provide a tax-efficient gateway for global investors, including Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). It draws on Equirus's established onshore investment strategy, which has delivered a compounded annual growth rate of 21.6 percent over more than eight years. Ajaykumar Gupta, Chief Business Officer at Equirus Asset Manager, noted, "This fund is more than a financial instrument. It connects global investors to the next chapter of India's economic rise. As the country advances toward becoming a 10 trillion dollar economy, our fund offers a transparent and compliant structure for participating in that transformation." Equirus's small-cap strategy is grounded in identifying companies capable of compounding earnings significantly above India's nominal GDP growth. The fund maintains a diversified portfolio of 20 to 25 businesses, ensuring a balance between risk management and focused capital allocation. As global interest in Indian equities increases, particularly in the under-researched small-cap segment, the new fund positions itself as a timely opportunity for long-term investors.
Fibre2Fashion
26-06-2025
- Business
- Fibre2Fashion
India emerges as key player in 'China +1' manufacturing shift: Report
India's structural economic strength is positioning it as a global growth leader, set to outpace G7 economies in the coming years, according to wealth management firm Equirus. A major driver of this transformation is a structural shift in manufacturing, with India emerging as a key beneficiary of the evolving 'China +1' strategy. India is expected to contribute over 15 per cent to incremental global GDP between 2025 and 2030—exceeding the projected shares of Germany and Japan, and even surpassing Bangladesh in relative impact, Equirus said in a report. Multinational corporations are increasingly moving production to India, attracted by cost efficiencies, lower attrition, and geopolitical alignment. This marks a significant reconfiguration of global supply chains in India's favour, it said. India is poised to outpace G7 economies, driven by manufacturing gains from the 'China +1' shift, rising public investment, and stable macroeconomic conditions, as per Equirus. It forecasts India will contribute over 15 per cent to global GDP growth (2025â€'2030). With global firms shifting production and supportive fiscal measures, India is emerging as a key player in reconfigured supply chains. 'India is no longer the world's fastest-growing economy just on paper—it is structurally better positioned than most G7 nations. That's a seismic shift,' said Mitesh Shah, chief executive officer (CEO) at Equirus Credence Family Office . The rural-urban monthly per capita expenditure gap has narrowed from 84 per cent to 70 per cent over the last decade, signalling a broader consumption-led recovery. A post-election surge in public capital expenditure is further boosting India's economic momentum, with central and state investments expected to rise by 17.4 per cent. The Reserve Bank of India (RBI) has infused ₹2.5 lakh crore (~$30 billion) of liquidity into the system through phased cash reserve ratio (CRR) cuts to support this expansion. Macroeconomic tailwinds such as a 6 per cent decline in the US Dollar Index (DXY) from its 2025 peak and stable crude oil prices at $70 per barrel are further easing India's import burden and reinforcing its stability. The report also challenged the relevance of the traditional 60/40 asset allocation model, especially after the historic losses in 2022 when equities and bonds both plunged. It advocated a globally diversified, forward-looking investment strategy that spans geographies, sectors, and cycles. With a multi-engine growth model rooted in manufacturing, public investment, and supply chain diversification, India is increasingly viewed as a central force in the shifting global economic landscape, concluded the report. Fibre2Fashion News Desk (SG)
Hans India
24-06-2025
- Business
- Hans India
India to outpace G7 economies: Report
New Delhi: Global capital can no longer overlook India's structural economic advantages, as the nation is poised to significantly outpace G7 economies in growth, according to a report released on Monday by wealth management firm Equirus. 'India is no longer the world's fastest-growing economy just on paper -- it is structurally better positioned than most G7 nations. That's a seismic shift,' said Mitesh Shah, CEO, Equirus Credence Family Office. 'The global macro regime is shifting. US growth has been revised down sharply, and while India is projected to contribute over 15 per cent to global GDP growth (2025-2030), traditional 60/40 portfolios are breaking down. In this new regime, strategic asset allocation across geographies and growth cycles isn't optional -- it's the alpha generator,' he added. India is benefiting from structural trends: rural FMCG demand outpacing urban (6 per cent vs 2.8 per cent), policy-led capex rising 17.4 per cent, and Rs 2.5 lakh crore liquidity infusion underway, the report states. India's contribution to global GDP growth is significantly outpacing Japan (less than 1 per cent) and Germany (just over 1.3 per cent), the report points out. The report also highlights global factors reinforcing India's advantage. The Dollar Index (DXY) has declined approximately 6 per cent from its 2025 peak, and crude oil remains stable at $70/barrel, easing India's import bill pressure. It further states that while the 'China +1' narrative is evolving, concrete shifts are emerging. As multinational firms like Apple diversify away from China, shifting iPhone production to India benefits from cost efficiencies, lower attrition, and geopolitical alignment. The report also sees a government policy-led capex boom boosting India's growth. Central plus state capital expenditure is set to jump 17.4 per cent post-election, backed by a Rs 2.5 lakh crore liquidity infusion via phased CRR cuts, the report added.
