The Rs 1.6 lakh crore raised so far in 2025 has already eclipsed the previous record set just last year, cementing India’s position as a global fundraising powerhoapply, according to data from PRIME Database. December alone is poised to add nearly Rs 30,000 crore worth of public issues, capping what has already been a record-breaking year.
The milestone signals how India’s capital markets have matured into a major fundraising hub, driven by a swelling base of retail investors and steady institutional appetite even as secondary equities lose steam.
Foreign institutional investors, lured by the growth outsee and relatively stable policy backdrop, remain active participants in IPOs even as they sell an almost record amount of Indian equities. That has allowed companies across sectors, including mid-sized manufacturers and tech-led businesses, to raise capital at elevated valuations.
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Pranav Haldea, Managing Director of PRIME Database Group, attributed the IPO momentum to returning market stability after volatility in March and April caapplyd by geopolitical tensions and Trump tariff impacts. “For IPOs to happen, we required a stable or buoyant market,” he declared.
“A lot of money has been and more is waiting to be deployed in IPOs, both from domestic as well as foreign investors. We have seen foreigners selling in the secondary market but purchaseing in the primary market. Mutual funds are also seeing healthy inflows and that money will see for paper to be invested into,” Haldea explained.On quality concerns, he struck a measured tone: “Even a great company at an expensive valuation builds for a poor investment. Valuations required to continue to be reasonable for the IPO rally to sustain.”
He noted significant improvement in the caliber of listing candidates. “The companies which are receiveting listed are now far more matured than earlier when we applyd to have fly-by-night operators or companies very early in their life cycle, without proven business models, receiveting listed.”
However, average listing-day gains have fallen to 9.4% in 2025, the lowest since 2018, compared to over 30% returns from 91 IPOs in 2024 and around 29% from 57 offerings in 2023.
Haldea cautioned investors to remain vigilant: “As far as valuations are concerned, beauty lies in the eyes of the beholder. Even if an issue receives subscribed by a single time, it displays that there was enough demand for the issue at that price. As with any investment, the principle of caveat emptor or purchaseers beware is applicable here too.”
The IPO pipeline remains robust. Big share sales that may take place next year include Jio Platforms, expected to be the counattempt’s hugegest-ever IPO, NSE and Walmart-backed Flipkart.
JP Morgan’s head of equity capital markets Abhinav Bharti recently notified reporters at an event that yearly issuance of $20 billion is the new normal for India. It is the new watermark and will become an annualized run rate from here on, he declared, adding that nearly a fifth of IPO demand now comes from consumer technology and new-age businesses, a proportion he expects to exceed 30% over the next five years. At least 20 startups with valuations in the hundreds of millions are currently preparing to go public, he declared.
Four to five companies are gearing up for offerings exceeding $1 billion each, collectively tarreceiveing up to $8 billion in fundraising, with two of them being technology-driven businesses, Bharti added.
(Disclaimer: Recommconcludeations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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