IPO Boom of 2025 Sets the Stage for a Strong New Year
India’s IPO market witnessed an extraordinary run in 2025, touching historic highs in fundraising and participation. Companies collectively raised a record ₹1.76 trillion, supported by strong domestic liquidity, steady macroeconomic conditions and sustained investor confidence. Market experts believe this momentum is likely to continue into the New Year, with a deep pipeline of public issues already in place.
The year stood out not just for the sheer volume of capital raised, but also for the diversity of issuers and the strong appetite shown by investors across segments.
Record fundraising reflects issuer and investor confidence
The scale of IPO fundraising in 2025 surpassed all previous years. The amount raised exceeded ₹1.6 trillion in 2024 and was far higher than the funds mobilised in 2023. This surge highlighted issuers’ confidence in market conditions and investors’ willingness to back both established companies and emerging businesses.
Investor behaviour during the year showed a clear trend. Many participants chased listing-day gains, while others focused on companies offering long-term growth visibility. Strong subscription levels across multiple issues underlined the depth of demand in the primary market.
Macroeconomic stability played a key role. Factors such as consistent GDP growth, manageable inflation and a predictable policy environment helped strengthen confidence among both domestic and global investors.
Startups return to the primary market spotlight
One of the defining features of 2025 was the return of startup IPOs. As many as 18 startups entered the public markets, raising more than ₹41,000 crore. This marked a significant jump from 2024, when startups raised around ₹29,000 crore.
The renewed activity reflected a reset in valuations and sharper focus on sustainable business models. Companies that went public showcased clearer profitability paths and disciplined growth strategies, which helped restore investor trust after a cautious phase.
Technology and consumer-focused platforms dominated this revival, signalling that investors are once again willing to bet on innovation-led growth, provided fundamentals are strong.
OFS dominates fundraising, but participation widens
Offer for Sale (OFS) continued to account for the bulk of IPO fundraising in 2025, contributing nearly 60 per cent of the total capital raised. This trend indicated promoters’ and early investors’ preference to unlock value without diluting company capital or altering ownership structures.
Only a limited number of companies raised funds entirely through fresh equity, while most opted for a mix of fresh issues and OFS, with OFS forming the larger share. Mature companies with limited capital expenditure needs found this route especially attractive.
Despite the dominance of OFS, participation was broad-based. Large-cap, mid-cap and small-cap firms all tapped the IPO route. The average issue size crossed ₹1,700 crore, reflecting healthy depth across market segments. At the same time, smaller IPOs also found takers, underlining the diversity of issuers.
Strong subscriptions and a busy pipeline ahead
Investor demand remained robust throughout the year. Several IPOs witnessed exceptionally high subscription levels, with some issues drawing bids multiple times their offer size. This enthusiasm translated into solid post-listing performance, with nearly two-thirds of IPOs delivering positive returns.
The SME segment also saw remarkable growth. A record 252 SMEs raised over ₹11,400 crore in 2025, compared with lower mobilisation in the previous year. While these offerings attracted significant interest, they also carried higher risks, particularly for retail investors.
Looking ahead, the outlook for IPOs remains optimistic. More than 75 companies have already received regulatory approval but are yet to launch their issues, while around 100 more are awaiting clearance. The upcoming pipeline spans sectors such as technology, financial services, infrastructure, energy and consumer businesses, indicating broad-based participation rather than dependence on a single theme.
With marquee names expected to hit the market and liquidity conditions remaining supportive, the IPO ecosystem appears well-positioned to sustain its momentum into the coming year.
