2025 a record year for IPOs: 10 things you should know

India’s primary market scripted history in 2025, with IPO fundraising hitting an all-time high even as signs of valuation fatigue and moderating investor enthusiasm emerged beneath the headline numbers.

According to data from primedatabase.com, companies raised a record ₹1.76 lakh through mainboard IPOs during the year. Pranav Haldea, Managing Director of PRIME Database Group, said this marks the first time in India’s history that IPO fundraising has hit record highs for two consecutive years. Historically, Haldea noted, a bumper IPO year was almost always followed by a lull lasting 2-3 years, a pattern that 2025 decisively broke.

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Here are 10 things you should know about India’s record IPO year:

1. IPOs hit a historic high — two years in a row

Indian companies raised a record ₹1.76 lakh crore through mainboard IPOs in 2025, surpassing the previous high of ₹1.59 lakh crore in 2024. A total of 103 companies tapped the markets, making 2025 the second consecutive year of all-time high IPO mobilisation, a first in India’s market history.

2. Public equity fundraising fell despite the IPO boom

Despite record IPO numbers, overall public equity fundraising declined 18% year-on-year to ₹3.06 lakh crore, dragged down by weaker activity in QIPs, FPOs and OFS.

3. Mega IPOs dominated, but deal sizes stayed stable

The largest IPO of 2025 was Tata Capital, which raised ₹15,512 crore, followed by HDB Financial Services (₹12,500 crore) and LG Electronics India (₹11,605 crore). The smallest IPO was Jinkushal Industries, which raised ₹116 crore. The average IPO size stood at ₹1,708 crore, largely in line with last year.

4. New-age tech IPOs steady, not dominant

There were eight new-age technology company (NATC) IPOs in 2025, compared with nine in 2024, raising ₹30,602 crore. While tech listings remained relevant, they were no longer the sole driver of IPO momentum.

5. LG Electronics drew peak retail interest

Retail interest remained selective. LG Electronics India received the highest number of retail applications at 54.49 lakh, followed closely by Meesho (54.12 lakh) and Standard Glass Lining Technology (49.34 lakh).

6. Retail enthusiasm cooled after last year’s frenzy

The average number of retail applications per IPO dropped sharply to 14.99 lakh in 2025 from 18.87 lakh in 2024, signalling moderation after last year’s exuberance. Investor response also softened, with only 60% of IPOs receiving subscriptions of over 10 times, down from 72% in 2024, according to Prime Database.

7. Listing gains fell sharply

Weaker listing performance dampened sentiment. Average listing gains fell to 10%, compared with 30% in 2024. Only 36% of IPOs delivered returns of over 10% on listing day, versus 67% last year, highlighting rising valuation fatigue.

8. Promoters dominated exits; fresh capital took a backseat

Promoter selling was a major theme. Offers for sale by private promoters accounted for 45% of total IPO proceeds (₹79,030 crore), while fresh capital raised formed just 37% (₹64,406 crore). PE/VC exits added another 12% (₹20,643 crore), underlining the exit-heavy nature of the IPO cycle.

9. Mutual funds overtake FPIs as anchor investors

For the first time, mutual funds emerged as the largest anchor investors, subscribing to 14.44% of issue amounts, marginally ahead of FPIs at 13.99%. Even as FPIs were net sellers in secondary markets, they invested ₹73,000 crore in primary issuances.

10. SME IPOs grew, but retail frenzy faded

The SME segment saw 30% higher mobilisation at ₹11,430 crore, but retail participation and listing gains dropped sharply. Average SME listing gains fell to 12%, from 60% in 2024, and oversubscription levels declined significantly.

Outlook for 2026: A crowded but promising pipeline

According to Prime Database, the IPO pipeline for 2026 remains robust. Ninety-six companies with plans to raise about ₹1.25 lakh crore already hold SEBI approval, while 106 more companies seeking to raise around ₹1.40 lakh crore are awaiting clearance. In addition, several new-age tech firms are preparing draft filings.

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However, Haldea cautioned that valuation discipline and secondary market stability will be critical. If issuers price realistically and markets remain steady, even if not euphoric, the next few years could mark a golden phase for India’s IPO market, rather than a short-lived spike.