India's primary market has reached unprecedented heights, with record-breaking IPO numbers positioning the nation as a global leader in initial public offerings. The Indian IPO market in 2025 witnessed a significant surge, with 373 companies raising ₹1.95 trillion, a twelve-fold jump over the last decade. Investment bankers in India have earned a record ₹4,100 crore in 2025. This surge is driven by a booming primary market and a high volume of IPOs. The country's capital markets are now expected to facilitate close to ₹4 lakh crore of capital formation in 2026.
2025: A Year of Blockbuster IPOs
The year 2025 saw an impressive ₹1.76 lakh crore raised through IPOs, marking the second consecutive year of record-breaking fundraising. Mainboard IPOs crossed the 100 mark for the first time since 2007, with 102 companies debuting and raising ₹1.8 trillion. SME IPOs also contributed significantly, with 267 companies raising ₹11,430 crore, a 30 percent increase from the previous year. Financial services emerged as the largest sector in IPO issuances, contributing 26.6 percent of the total capital raised. Tata Capital's IPO, which raised ₹15,511.87 crore, was the fourth-largest in India's history.
While the IPO market experienced a boom, overall equity fundraising declined due to fewer follow-on issuances. Retail investor participation moderated, with average listing gains declining to 10 percent compared to 30 percent last year. Nevertheless, long-term returns from IPOs remained strong.
Factors Fueling the IPO Surge
Several factors contributed to India's IPO success in 2025. Strong domestic participation, a rise in demat accounts, and easy access to online investing fueled high retail investor interest. Key sectors such as manufacturing, capital goods and niche technology experienced substantial listing gains. Government initiatives to ease regulations surrounding public offerings also played a crucial role. The Indian economy's resilience, with a projected GDP growth rate of 6.5% for 2025, further boosted investor confidence.
Looking Ahead to 2026
The IPO momentum is expected to continue into 2026, with projections estimating ₹3.5 to ₹4 lakh crore in primary market fundraising. Key trends expected in 2026 include fewer speculative listings, increased focus on profitability and cash flows, and continued interest in manufacturing, infrastructure, and financial services. Several major IPOs are anticipated, including Reliance Jio, NSE, Flipkart, PhonePe, and SBI Mutual Fund.
Challenges and Considerations
Despite the optimistic outlook, challenges remain. IPO investing demands discipline, with investors needing to evaluate valuations, study financials, and avoid hype-driven decisions. Some IPOs in 2025 struggled to maintain their issue price, underscoring the importance of informed decision-making.
Conclusion
India's IPO market has demonstrated remarkable growth and resilience, establishing itself as a global leader in primary market activity. While the market is expected to remain strong in 2026, investors must remain cautious and focus on fundamentals to navigate the evolving landscape successfully.
