India on Track for Record‑Breaking IPO Year in 2025

India is currently riding a historic wave of primary market activity. So far in 2025, Indian companies have raised $6.7 billion through IPOs, surpassing the $5.4 billion raised in the same period of 2024. This puts India ahead of all countries except the U.S. in global IPO fundraising — a remarkable shift for a rising economic powerhouse. Industry experts to predict an additional $20 billion to $23 billion could be raised by year-end. Although global economic and geopolitical uncertainties remain, domestic investor enthusiasm and robust equity sentiment are fueling what may become a record-breaking IPO cycle.

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1. The Numbers Behind the Surge

As of mid-2025, India has already raised $6.7 billion via 62 IPOs, accounting for about 22% of global IPO proceeds. This marks a sharp jump from last year’s first-half total of $5.4 billion. With domestic market buoyancy and investor interest reaching new heights, India has all but secured its place as the world’s second-largest IPO market behind the U.S. Continued momentum, aided by favorable market conditions, could push total IPO proceeds to well over $20 billion by December.

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2. Drivers of the IPO Boom

Several key factors underpin the India record IPO year 2025 phenomenon:

• Lower interest rates: The Reserve Bank of India has cut rates, reducing fixed-income yields and pushing capital toward equities.

• Strong domestic investor participation: Households are increasingly channeling savings into mutual funds and equities.

• Rising income tax cuts: More disposable income is fueling market interest.

• Positive listings: Early IPOs, such as HDB Financial Services and Hexaware, delivered healthy returns, boosting investor confidence.

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3. The Pipeline and Future Deals

October expects more big names to hit the markets. National Securities Depository Ltd (NSDL) is planning an OFS estimated at $400 million. Other entities like ICICI Prudential AMC, JSW Cement, Credila, Groww, and Pine Labs have also signaled IPO plans. Additionally, large-cap names such as Reliance Jio, LG India, and Lenskart are lining up for public listings. Based on Dealogic projections, an additional $20 billion could be raised in the second half of the year — potentially bringing total IPO issuance to between $23 and $27 billion.

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4. Sectoral Spread and Market Balance

This IPO boom is not confined to financial services. Themes include:

• Fintech and digital platforms (Groww, Pine Labs)

• Infrastructure and industrials (JSW Cement, Credila)

• Asset Management/Wealth Management (ICICI Prudential AMC)

• IT Services (Hexaware)

This diversified participation highlights both market depth and investor willingness to back growth across sectors. The presence of large-ticket IPOs also signals healthy appetite for mid- and large-cap issues, stabilizing market dynamics.

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5. Retail and Institutional Participation

Domestic retail investors remain the backbone of this rally. Supported by India’s booming mutual fund ecosystem and rising online brokerage adoption, retail play has become significant. Meanwhile, institutions domestically have pumped over $42 billion into equities so far, offsetting the outflow of roughly $8 billion by foreign institutions due to global valuation pressure. The fund flows and balanced mix have helped stabilize markets and sustain IPO momentum.

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6. Risks and Geopolitical Factors

While the India record IPO year 2025 narrative is compelling, certain risks loom:

• Global trade tensions: U.S. protectionist measures and geopolitical disruptions could destabilize sentiment.

• Domestic macro uncertainty: Inflation spikes, fiscal slippage, or policy missteps may dampen appetite.

• Valuation stretch: Elevated IPO valuations could prompt caution or rejections.

• Liquidity fluctuations: Equity inflows may slow, especially if global conditions deteriorate.

Despite these risks, the positive momentum remains dominant.

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7. Impact on Equity Markets

Indian equity benchmarks, including the Nifty 50, have rallied ~7% year-to-date, nearing record highs. IPOs have injected liquidity and broadened market participation. The India record IPO year 2025 has also deepened capital markets, improved price discovery, and increased opportunities for securitization. For investors, this has meant access to diverse, high-growth companies early in their public journey.

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8. Long-Term Structural Benefits

This IPO boom may have lasting effects:

• Market maturity: A creditable environment for large, diverse listings helps India build global capital market stature.

• Corporate governance improvements: Public listing requirements promote transparency and management discipline.

• Investor assertiveness: As domestic investors gain experience, they demand stronger disclosures and performance.

• International capital inflow: Over time, improved listings could lure Global Institutions back to India.

These effects may define India’s equity market for decades.

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9. What to Look Out For

As the IPO wave continues, watchers should track:

• Gross proceeds raised versus expectations

• Post-listing performance and grey market premiums

• Pipeline companies filing DRHPs

• Foreign institutional investor (FII) sentiment rematerialization

• RBI’s liquidity stance and macro adjustments

Continued strength in listings and market support will determine whether this becomes a generational high.

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10. Strategic Outlook

If India indeed crosses $20 billion in IPO proceeds by year-end, it will emerge as the world’s second-largest IPO hub in 2025. For companies, it provides access to growth capital, global visibility, and exit routes for early investors. For markets, it means depth, diversity, and improved institutional infrastructure. For investors, it offers unique buy-on-open opportunities and portfolio diversification.

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Final Takeaway

The India record IPO year 2025 narrative is more than hype—it reflects structural changes in domestic savings, capital formation, and corporate ambition. With positive sentiment, strong pipeline, and policy tailwinds, India is well-positioned for a historic year in public offerings. While risks remain, this activity represents a vote of confidence in India’s economic future and financial markets.

Source: Financial Times

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