After a record-breaking surge in initial public offerings (IPOs), India's IPO market is showing signs of cooling in 2025. While 2024 witnessed an unprecedented boom, driven by strong retail participation, a resilient economy, and increased private capital expenditure, the current year presents a more nuanced picture. Several factors contribute to this shift, including global economic uncertainties, domestic market volatility, and cautious investor sentiment.
The IPO market in India started slowly in 2025, but is now showing signs of a resurgence, supported by a stabilizing secondary market and easing geopolitical tensions. Several companies, including HDB Financial Services and NSDL, are planning to launch their IPOs in the coming months.
Despite the cautious start to 2025, there are positive indicators. The number of companies filing documents is increasing, and the second half of the year is expected to see increased IPO activity. According to KPMG's analysis, India saw 80 mainboard IPOs in FY25, slightly more than the 76 in FY24, with total capital raised significantly increasing to INR 1,630 billion from INR 619 billion the previous year.
India's IPO market remains a prominent global player. In the first quarter of 2025, India accounted for 22% of global IPO activity, with 62 IPOs raising a total of US$2.8 billion. Despite a decline in volume, the percentage of profitable IPO companies increased, indicating strong market fundamentals. Sectors such as Industrials, Real Estate, Hospitality & Construction, and Health & Life Sciences saw active participation.
The Indian IPO market is expected to raise ₹20,565 crore in July 2025, the highest monthly total since December 2024. This increase in primary market activity reflects improved investor confidence and a recovering equity landscape. The IPO pipeline remains robust, with several large and mid-sized companies preparing to list, supported by stabilised indices and easing geopolitical concerns. Major contributors to this surge include Credila Financial Services, aiming for ₹5,000 crore, and National Securities Depository Ltd. (NSDL) IPO with a ₹3,424 crore issue.
The long-term outlook for the Indian IPO market remains optimistic, despite fluctuations caused by geopolitical tensions, inflation rates, and global economic influences. Companies aiming to go public are eager to leverage the expanding middle-class consumer demographic and the growing digital economy.
To regain its momentum, the Indian IPO market needs to address several key areas. Maintaining investor confidence through transparent and robust regulatory frameworks is crucial. Companies must also focus on strong fundamentals, reasonable valuations, and clear communication of their growth strategies. Furthermore, a stable macroeconomic environment and supportive government policies can provide the necessary impetus for sustained growth in the IPO market.
Overall, while the India's IPO boom has cooled in 2025 compared to the highs of 2024, the market is far from stagnant. With a strong pipeline of companies, increasing investor confidence, and a resilient economy, the Indian IPO market has the potential to regain its momentum and continue to be a significant destination for companies seeking to go public.
