The Bird of Gold

India has truly done the impossible. Fallen from its former glory as the nation of supreme wealth into a bare husk of what it truly was, having been looted of unearthly treasure like the gem-studded peacock throne and Kohinoor, India rose back again like a phoenix burned.

Even with the massive ups and downs throughout the past century especially the Indo-Pakistani war, the India and China conflict and the territorial war over Jammu and Kashmir with Pakistan alongside the pivotal Covid-19 era which nearly exhausted the country’s resources, India is now finally at the threshold of its rightful throne. Achieving the extraordinary with the simplicity of a single approach, which is IPO. It seems that the former bird of gold takes to the sky once more as India competes to rise.

The visionaries of the seven underdog companies shed the label of a millionaire and leap forward in the field of economy. The initial public offering (IPO) is a well-known method in business wherein a company sells its ownership status, i.e., its equity to individuals and institutional investors for the first time in exchange for funds necessary for its growth.  Along with a massive increase in India’s economy, India managed to create a record fundraising, raising INR 1.67 lakh crore (around $19.5 billion) through 268 IPOs, making it the highest globally for the year with 23% of the funds being raised by the seven recently billionaire companies. 

As confusing as these figures may seem, it is clear that this IPO boom has affected India massively. Coming to these seven billionaire companies, primarily from the renewable energy sector, have both contributed to and gained from this IPO boom. The boom was particularly pronounced in sectors like renewable energy and technology, which attracted substantial investments. Companies such as Hyundai Motor India led the way by developing historic IPOs, showcasing the potential of these industries to drive economic growth. The average issue size for IPOs rose significantly, indicating larger companies entering the market. The vibrancy of the IPO market also extended to small and medium enterprises (SMEs), which greatly contributed to the record fundraising of 2024. The robust performance of Indian IPOs even attracted foreign portfolio investors (FPIs), who were significant buyers in larger IPOs despite being net sellers in the secondary market. This influx of foreign capital indicates growing international confidence in India's economic prospects. India's dominance in the global IPO landscape, surpassing major economies like the United States, positioned it as an emerging hub for capital fundraising, enhancing bargaining power and popularity as a hub for foreign investment.

However, what does this all mean for India and its economy in the future? Where does this leave us? Well, this question can only be answered as time goes on. No one can know what the future brings, we can only comprehend, guess and prepare. Who is to say that the new virus brewing in China will not bring the same destruction as COVID-19? We might even get the British to give us the Kohinoor or extinguish the threat of global warming. However, this unpredictable future is not one to fear rather we as human beings should relish this feeling of suspense, curiosity and anticipation. We never know for certain what will happen in this world and that is the true beauty of it all.