India’s stock market set to boom with trio of high-profile IPOs ahead of Diwali

India’s stock market is set for a surge in IPOs, thanks to the US Fed’s rate cut and during the festival season, with new listings expected to raise US$5 billion

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A man walks past the National Stock Exchange building in Mumbai, India. Photo: Reuters

Published: 12:00pm, 4 Oct 2024Updated: 10:33am, 11 Jan 2025

A trio of high-profile IPOs set to debut during India’s festival season could inject billions into the country’s stock market, with analysts saying the offerings will act as a crucial gauge of investor confidence.

The three companies – Hyundai Motor India, Swiggy, and Vishal Mega Mart – are expected to collectively raise about US$5 billion through the stock launches, with Hyundai alone planning an offering of at least US$3 billion, according to Bloomberg.

The offering from Hyundai Motor India, the nation’s second-largest carmaker, will be one of India’s biggest-ever IPOs, while online food delivery firm Swiggy aims to join its rival Zomato on the public markets after the latter’s listing in July 2021.

Vishal Mega Mart, a supermarket chain backed by Partners Group Holding AG and Kedaara Capital, plans to raise between US$850 million and US$1 billion.

The high-profile listings come as India’s stock market sentiment remains buoyant, bolstered by the US Federal Reserve’s unexpected half-percentage-point rate cut last month – the first reduction in four years – which has generated optimism among investors.

Hyundai Motor India is planning a US$3 billion IPO this year. Photo: Reuters

India’s festival season, which commences in October with a series of vibrant Hindu religious celebrations culminating in Diwali – the festival of lights – is traditionally considered an auspicious time to invest, adding further momentum to the IPO rush.