India's primary equity market witnessed a record-breaking year in 2025, with companies raising ₹1.95 trillion through over 365 Initial Public Offerings (IPOs). This surge represents the strongest year ever for fundraising activity, according to a recent strategy report by Motilal Oswal Financial Services. The milestone builds upon the already impressive ₹1.90 trillion mobilized through 336 IPOs in 2024. Together, the past two years have seen a remarkable ₹3.8 trillion raised via 701 IPOs, exceeding the ₹3.2 trillion collected over the five-year period from 2019 to 2023.
Mainboard listings continued to be the dominant force in the market, accounting for nearly 94% of the total funds raised in 2025. Out of the 365 IPOs, 106 were mainboard issues, contributing ₹1.83 trillion, while the remaining 259 SME (Small and Medium Enterprises) IPOs collectively raised a smaller portion of the capital. Over the past two years, just 198 mainboard companies have raised ₹3.6 trillion, highlighting their significant role in capital formation. The average issue size exceeded ₹1,700 crore, demonstrating broad participation across market capitalizations.
One of the year's highlights was Tata Capital's ₹155 billion IPO in October 2025, making it the fourth-largest IPO in the country's history. Other notable main-board IPOs included HDB Financial Services, LG Electronics India, Hexaware Technologies, Lenskart Solutions and Billionbrains Garage Ventures. In contrast, Jinkushal Industries launched the smallest IPO, raising ₹116.5 crore, showcasing the diversity of issuers.
The Motilal Oswal report also pointed out a diversification in sector participation. Non-banking financial companies (NBFCs) led fundraising in 2025 with a 26.6% share, followed by capital goods, technology, healthcare, and consumer durables. This is a shift from 2024, which was dominated by automobiles, telecom, and retail. Interestingly, sectors like utilities and private banking, which were significant contributors in 2024, did not see any IPO fundraising in 2025.
Investor demand remained strong, with IPOs oversubscribed by an average of 26.6 times over the past two years. SME IPOs were particularly popular, with subscription levels exceeding 100 times in many cases. Approximately 55% of mainboard IPOs listed in the last two years are currently trading above their offer prices.
The IPO market's strong performance in 2025 was driven by factors such as strong domestic liquidity, resilient investor confidence, and supportive macroeconomic conditions. This positive momentum is expected to continue into the new year. The hectic IPO activity was also visible in the SME segment with a record 252 SMEs raising ₹11,400 crore in 2025.
The year also saw a resurgence of startup listings, with 18 startups, including Lenskart, Groww, Meesho and PhysicsWallah, going public and collectively raising over ₹41,000 crore. This represents an increase from the ₹29,000 crore raised by startups in 2024 and signals a reset in valuation expectations and business models. Offer for Sale (OFS) continued to dominate fundraising activity, accounting for about 60% of the total capital raised in 2025.
Looking ahead to 2026, the IPO pipeline remains robust, with over 75 companies having already received approval from SEBI and another 100 awaiting approval. These companies span various sectors, including technology, financial services, infrastructure, energy and consumer goods. Major IPOs expected in the coming year include Reliance Jio, SBI Mutual Fund, Oyo, and PhonePe, indicating continued activity in the primary markets.
