India's IPO market has witnessed unprecedented growth in FY 2024-25, establishing itself as a global leader. In 2024, India led the world with 338 IPO deals, marking a 44% increase compared to the previous year and raising nearly $21 Bn—almost three times the IPO proceeds of 2023—making it the top APAC market for IPO volume and capital mobilisation.^[1][2]

This robust performance is underpinned by a surge in both large-scale offerings like Hyundai's Indian subsidiary IPO of $3.3 Bn and a flourishing SME segment, which has driven the small and medium enterprise listings to a milestone, with over 300 listings in the year. The Indian stock exchanges have now become capable of financing jumbo IPOs, reflecting a deepening market sophistication, even as overall IPO activity in APAC declined from $73.49 Bn in 2023 to around $51.59 Bn in 2024.^[3]

Furthermore, India’s credit rating was upgraded by S&P Global Ratings to BBB from BBB- in 2025, reflecting improved fiscal management, resilient GDP growth, currently projected at 6.5% for FY 2024-25, and a positive economic outlook. India's economic fundamentals are further strengthened by consistent FDI inflows, which have risen from $36.05 Bn in FY 2013-14 to $81.04 Bn (provisional) in FY 2024-25, a 14% increase from FY 2023-24. The period between 2014 and 2025 accounts for nearly 70% of all FDI, i.e. $1,072.36 Bn, received in the past 25 years.^[4]

Korean IPOs have taken centre stage in the IPO arena, riding the momentum of India's growth, with blockbuster IPOs like Hyundai Motors and LG Electronics. It is noteworthy that Korea ranks 13th among the investor countries from which India has received FDI. From April 2000 to June 2025, FDI equity inflow from South Korea are $6.81 Bn (₹46,623 Cr), which represents 0.91% of the cumulative inflow received in India.^[5] Some of the recent IPOs by Korean companies are shared below.

Hyundai Motor India was the nation’s largest IPO ever, raising $3.3 Bn by liquidating 17.5% as an offer-for-sale (OFS), looking to tap into the strong investor base of major long-only institutional investors who were attracted to the long-term value prospects of the Korean carmaker’s Indian unit that correspond with the country’s rapidly growing middle class. The record $3.3 Bn IPO was two times oversubscribed.^[6][7]

LG Electronics India listed in October 2025, targeting a valuation of around ₹774 Bn (~$8.7 Bn) and selling a 15% stake via OFS. However, on the day of its IPO, the shares of LG Electronics India surged 50%, lifting the company’s valuation to ₹1.13 Tn ($12.7 Bn). Remarkably, this valuation surpassed that of LG’s parent company listed on Seoul’s stock market, which stood at ₩14.5 Tn ($10.1 Bn).^[8][9]

CJ Darcl Logistics has also filed for an IPO, combining fresh equity issuance and OFS shares to raise capital for debt repayment and funding capital expenditure requirements of the company towards the purchase of EVs and general corporate purposes in September 2025 and the announcement of the date for the IPO is eagerly awaited by the investor community, who are bullish on the company and its position in the market.^[10]

When a Korean parent company lists its Indian subsidiary, an important motivation is the ability to monetise part of its shareholding. Through an Offer for Sale (OFS), the parent can sell a portion of its stake and unlock capital without issuing new shares or diluting the subsidiary’s equity base. The funds received go directly to the parent entity, allowing it to realise returns on its India investment and redeploy the capital strategically across markets or business priorities.

Another key driver is the opportunity to access India’s domestic capital pool. A listing opens the door to Indian retail and institutional investors, reducing dependence on parent-level or foreign financing. Even if the IPO contains only an OFS component, the subsidiary gains the advantage of being able to raise capital in the future through follow-on issuances such as Qualified Institutional Placements (QIPs) or rights issues. This widens the funding base and strengthens financial flexibility for growth in India.

A further benefit stems from the enhanced market presence and credibility that comes with being a listed entity. Public listing requirements bring heightened transparency, corporate governance standards, and regular disclosures, which in turn build confidence among customers, suppliers, lenders, and government stakeholders. For a foreign subsidiary, the act of listing itself shows a long-term commitment to the Indian market and helps the brand become more visible while strengthening business ties in the area.

Finally, valuation-related advantages also influence the decision to list in India. Local equity markets often show strong appetite for scalable, well-governed businesses and may assign higher valuations based on domestic growth prospects. Listing enables independent price discovery of the Indian business, which can unlock value that may not be fully reflected in the parent company’s valuation abroad. Over time, a well-performing listed subsidiary can also strengthen the parent company’s overall market perception as its India operations become more visible and independently valued.

India’s appeal goes beyond IPOs. Robust household spending, falling savings and strong goods demand make the market attractive for global manufacturers. Private consumption recovered sharply in FY 2024–25, with national statistics and official forecasts pointing to private consumption growth of about 7.3% in FY 2024–25, supporting retail and durables demand.^[11]

This rise in consumption is visible in sectoral sales: the auto industry recorded a rise in total domestic vehicle volumes to 25.6 Mn units in FY 2024–25, up from 23.9 Mn a year earlier, driven by growth in two-wheelers, utility vehicles and three-wheelers.^[12][13]

Meanwhile, electronics manufacturing and sales have surged—government and industry sources point to a rapid expansion of electronics production and assembly (the government has set targets for the electronics industry to reach roughly US$300 Bn by 2024–25), reflecting rising domestic demand for appliances, consumer electronics and mobile devices.^[14][15]

Government's push for domestic manufacturing through Make in India initiatives such as the Production-Linked Incentive (PLI) Scheme offers financial rewards to companies based on incremental sales to encourage manufacturing in strategic sectors such as electronics, pharmaceuticals, automobiles, telecom, and specialty steel. The Employment Linked Incentive (ELI) Scheme aims to catalyse formal employment creation across all sectors, with a special focus on manufacturing as well as policies like the National Manufacturing Mission which is a comprehensive initiative aimed at furthering the Make in India agenda by supporting small, medium, and large industries across the country encourage firms to manufacture locally, serving both India and export markets.

These initiatives offer a chance to global investors to diversify their supply chains, reducing risks tied to single-country dependence. India also has skilled, cost-effective talent and global service centres that boost manufacturing and IT capabilities. Listing Indian units lets companies tap into a local investor base that values well-known brands, sometimes leading to higher valuations than relying solely on the parent’s funding as seen with LG Electronics.

The recent IPOs by Korean companies signal strong belief in India’s growth potential. Despite global challenges, they see India as a key market and growth engine worthy of local capital market participation. This bullish outlook confirms India’s status as a prime destination for foreign investment.

This blog is written by Aayush Shekhar