India’s IPO Boom Hits Record in 2025, Momentum Expected to Continue Into 2026
India’s initial public offering (IPO) market scaled an all-time high in 2025, with companies raising a record ₹1.76 lakh crore, and market participants believe the...
India’s initial public offering (IPO) market scaled an all-time high in 2025, with companies raising a record ₹1.76 lakh crore, and market participants believe the strong momentum is likely to extend into the New Year, backed by deep liquidity, resilient investor confidence and a stable macroeconomic backdrop.
The landmark year underscored not only issuer confidence but also strong investor appetite, driven by expectations of listing-day gains and long-term growth prospects across sectors.
Record Fundraising and Broad-Based Participation
According to data compiled by IPO Central, 103 companies tapped the primary market in 2025, raising ₹1.76 lakh crore. This comfortably surpassed the ₹1.6 lakh crore mobilised by 90 firms in 2024 and the ₹49,436 crore raised by 57 companies in 2023.
IPO activity spanned the full market-cap spectrum—large, mid and small companies—while the average issue size exceeded ₹1,700 crore, reflecting the depth and breadth of participation.
Startups Make a Strong Comeback
One of the standout features of 2025 was the revival of startup IPOs after a cautious phase. As many as 18 startups, including Lenskart, Groww, Meesho and PhysicsWallah, went public, collectively raising over ₹41,000 crore, compared with ₹29,000 crore raised by startups in 2024.
Market experts say the rebound reflects a reset in valuations, more disciplined pricing and clearer paths to profitability, making technology and consumer internet companies investable again.
OFS Dominates Capital Raising
While IPO volumes surged, Offer for Sale (OFS) remained the dominant fundraising route, accounting for nearly 60% of total capital raised in 2025.
According to V. Prashant Rao, Director and Head of ECM Investment Banking at Anand Rathi Advisors, only 23 companies raised capital purely through fresh issues, with an average size of about ₹600 crore. In contrast, 15 companies raised more than ₹45,000 crore entirely through OFS, while most others opted for a mix—skewed heavily towards secondary sales.
This trend, Rao said, reflects promoters’ and early investors’ preference to unlock liquidity efficiently without diluting capital or altering ownership structures, especially for mature companies with limited capital expenditure requirements.
Uneven Year, Strong Finish
Despite the headline numbers, IPO momentum was not uniform through the year. Primary market activity remained subdued during the first seven months amid equity market volatility, weak foreign portfolio investor participation and global geopolitical risks.
Conditions improved sharply from August onwards, as macroeconomic concerns eased, domestic liquidity strengthened and equity markets stabilised, triggering a strong pickup in IPO launches.
Optimism for 2026: Pipeline Remains Full
Looking ahead, investment bankers remain optimistic about IPO activity in 2026.
Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, said the outlook remains encouraging, supported by a robust and diversified pipeline. More than 75 companies have already secured approval from the Securities and Exchange Board of India (SEBI) but are yet to launch their issues, while another 100 firms are awaiting regulatory clearance.
The upcoming pipeline spans technology, financial services, infrastructure, energy and consumer sectors, suggesting broad-based participation rather than dependence on a few themes. Expected marquee listings include Reliance Jio, SBI Mutual Fund, Oyo and PhonePe.
SME IPOs Set New Record
The IPO surge was equally visible in the SME segment, where a record 252 companies raised ₹11,400 crore in 2025, up from ₹9,580 crore raised by 222 firms in 2024.
While rising participation highlights growing investor interest in smaller public issues, market experts caution that SME IPOs carry higher risks for retail investors due to lower liquidity and greater business volatility.
Biggest and Smallest Issues of the Year
Among the largest main-board IPOs of 2025, Tata Capital topped the list with a ₹15,512 crore issue, followed by HDB Financial Services (₹12,500 crore), LG Electronics India (₹11,607 crore), Hexaware Technologies (₹8,750 crore), Lenskart Solutions (₹7,278 crore) and Billionbrains Garage Ventures (₹6,632 crore).
At the other end of the spectrum, Jinkushal Industries launched the smallest IPO of the year, raising ₹116.5 crore, highlighting the wide diversity of issuers tapping the market.
Strong Subscriptions, Disciplined Pricing
Investor appetite remained robust throughout the year, reflected in exceptionally high subscription levels. Highway Infrastructure emerged as the most-subscribed IPO of 2025, with bids exceeding 300 times, followed by Indo Farm Equipment, Denta Water and Infra Solutions, Stallion India Fluorochemicals, Quadrant Future Tek and Standard Glass Lining Technology.
Of the 103 IPOs, 70 delivered positive listing-day returns, while 32 listed at a discount, indicating what experts describe as healthy investor selectivity rather than speculative excess.
“Positive listings show confidence and disciplined pricing, while weaker debuts indicate the market is discerning, not euphoric,” Shah of Equirus Capital said.
Market Backdrop Supportive
India’s broader equity markets also provided a supportive backdrop. In 2025, the NSE Nifty 50 rose over 10%, while the BSE Sensex gained more than 9%, aided by strong GDP growth, contained inflation and policy stability.
According to Neha Agarwal, Managing Director and Head of Equity Capital Markets at JM Financial Institutional Securities, robust domestic liquidity and sustained investor confidence were key drivers behind the record mobilisation.
With a strong pipeline, improving market conditions and sustained domestic participation, analysts expect India’s IPO engine to remain firmly in top gear as the country heads into 2026.