Markets

Private equity investments in India surge 39% to $10.9 billion in 2024: LSEG report

India’s equity capital markets raised a record $49.2 billion during the January-September period

October 10, 2024

India continues to lead markets in the Asia-Pacific region for private equity activity

Private equity investments in India reached $10.9 billion in the first nine months of 2024, marking a remarkable 38.9 percent increase from the previous year, according to a report released on Thursday by LSEG, a global financial markets infrastructure and data provider.

India continues to be a leading market in the Asia-Pacific region for private equity activity, now accounting for 28 percent of the region’s total equity investments, up from 16 percent in the same period last year. This surge highlights India’s growing appeal as a hub for financial sponsors.

Elaine Tan, Senior Manager at LSEG Deals Intelligence, noted that the country offers diverse investment opportunities across various sectors, including healthcare, technology, and consumer services. Key drivers such as increasing consumption, digital transformation, and infrastructure development are fueling this heightened investor interest.

The confluence of these factors, combined with a resilient IPO market despite global downturns and a vibrant startup ecosystem, positions India as a significant player in the global private equity landscape for the remainder of the year. Tan also mentioned that anticipated global trends in monetary easing could further enhance private equity activity, allowing financial sponsors to access cheaper funding and deploy capital more effectively.

In parallel, India’s equity capital markets raised a record $49.2 billion during the January-September period, reflecting an astounding 115 percent growth compared to the previous year. The number of equity capital market offerings increased by 61 percent year-on-year.

Indian initial public offerings (IPOs) raised $9.2 billion during the same period, representing a 96 percent increase and marking the highest first nine-month total since 2021. The number of IPOs surged by 63 percent year-on-year, with a robust pipeline of upcoming listings, including prominent companies like Swiggy, Hyundai Motors, and LG Electronics.

With strong momentum in private equity and capital markets, India is poised for continued growth as an attractive destination for investors looking to capitalize on emerging opportunities.

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