The capital markets in India are set to witness a significant surge in fundraising activities in the upcoming fiscal year 2025, with estimates suggesting a 21% increase to ₹14.27 lakh crore from the previous fiscal year’s ₹11.8 lakh crore. According to SEBI chief Madhabi Puri Buch, entities have already raised a substantial amount of capital in the first nine months of the current fiscal year, including ₹3.3 lakh crore from equity and ₹7.3 lakh crore from debt markets, amounting to a total of ₹10.7 lakh crore.
Buch highlighted that real estate investment trusts, infrastructure investment trusts, and municipal bonds have contributed around ₹10,000 crore to the overall capital raising in the fiscal year 2025. She also emphasized the growing importance of these avenues in the capital markets and predicted that their contribution could surpass that of equity and debt markets in the next decade.
Furthermore, Buch mentioned SEBI’s efforts to expedite the approval process for issuances, particularly for small and medium enterprises. She noted that the regulator is working to reduce the time taken for clearing SME board proposals and is exploring the use of technology to streamline the process.
In addition, Buch stressed the significance of other fundraising avenues such as preferential issuances, institutional placements, and rights issues, alongside IPOs. She highlighted SEBI’s initiatives to facilitate faster clearances for rights issuances and announced the imminent launch of systematic investment plans (SIP) with a minimum amount of ₹250.
Buch commended the role of domestic institutional investors in mobilizing resources over the years, which has bolstered the market during periods of volatility. She also underscored the need for a swift regulatory pace to meet the developmental aspirations of the market.
Overall, the forecasted increase in fundraising activities in India’s capital markets in FY25 is indicative of a robust financial ecosystem and a positive outlook for investment opportunities in the country.