New Delhi, Dec 23 (PTI) The IPO market, which scaled a record high in 2025 with companies raising an unprecedented Rs 1.76 lakh crore, driven by abundant domestic liquidity, resilient investor confidence
and supportive macroeconomic factors, is expected to carry that momentum into the New Year.
This exceptional year not only reflected issuers' confidence but also highlighted investors' eagerness to chase listing-day gains and back companies with strong long-term growth potential.
A major highlight of the year was the resurgence of startup listings with as many as 18 startups, including Lenskart, Groww, Meesho and PhysicsWallah, going public and collectively raising over Rs 41,000 crore. In 2024, startups raised Rs 29,000 crore from the primary market.
This rebound signals a reset in valuation expectations and business models after a period of caution.
At the same time, Offer for Sale (OFS) continued to dominate fundraising activity, accounting for about 60 per cent of total capital raised in 2025.
Overall, companies across market capitalisations, large, mid and small, tapped the IPO route, with the average issue size exceeding Rs 1,700 crore, suggesting the breadth of participation.
Looking ahead, market participants remain optimistic about the IPO activity in 2026.
Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, said the IPO outlook for the New Year remains encouraging, supported by a deep pipeline and sectoral diversity.
More than 75 companies have already secured Sebi approval but are yet to launch their issues, while another 100 are awaiting regulatory clearance, he added.
The IPO pipeline spans technology, financial services, infrastructure, energy and consumer sectors, indicating broad-based participation rather than concentration in a few themes. It is also expected to feature marquee offerings such as Reliance Jio, SBI Mutual Fund, Oyo and PhonePe.
According to data compiled by IPO Central, 103 maiden public issues, launched in 2025, raised a total of Rs 1.76 lakh crore.
The fundraising exceeded the Rs 1.6 lakh crore raised by 90 firms in 2024, and the Rs 49,436 crore garnered by 57 companies in 2023.
According to Neha Agarwal, Managing Director and Head, Equity Capital Markets at JM Financial Institutional Securities, strong domestic liquidity and resilient investor confidence drove record fund mobilisation.
Equirus Capital's Shah said that India's macroeconomic stability, marked by strong GDP growth, contained inflation and a predictable policy environment, boosted confidence among global and domestic investors.
The momentum, however, was not uniform throughout the year. Primary market activity remained muted in the first seven months amid market volatility, weak foreign portfolio investor participation and geopolitical risks.
Conditions improved materially from August onwards, as macro concerns eased, liquidity strengthened and equity markets stabilised, triggering a sharp pickup in listings.
V. Prashant Rao, Director and Head, ECM Investment Banking, at Anand Rathi Advisors, says that while IPO volumes rose, fund-raising was skewed towards OFS.
Of the listed companies, only 23 raised funds entirely through fresh capital, with an average issue size of around Rs 600 crore. In contrast, 15 companies raised funds purely via OFS, mobilising over Rs 45,000 crore, while the rest adopted a mix of both, with OFS forming the larger share.
According to Rao, the preference for OFS reflects promoters' and early investors' desire to unlock liquidity efficiently without diluting the company's capital base or altering ownership structures. This route is particularly attractive for mature companies with limited capex needs.
On the comeback of tech and startup IPOs, JM Financial's Agarwal pointed to improved business models and clearer profitability paths, with most listings delivering positive gains.
The hectic IPO activity was also visible in the SME (Small and Medium Enterprise) segment with a record 252 SMEs raising Rs 11,400 crore in 2025, compared with Rs 9,580 crore mobilised by 222 firms in 2024, the IPO Central data showed.
This growth reflects rising interest in smaller public issues, though these offerings carry higher risks for retail investors.
Among the year's largest main-board IPOs, Tata Capital's Rs 15,512 crore issue topped the list, followed by HDB Financial Services (Rs 12,500 crore), LG Electronics India (Rs 11,607 crore), Hexaware Technologies (Rs 8,750 crore), Lenskart Solutions (Rs 7,278 crore) and Billionbrains Garage Ventures (Rs 6,632 crore).
At the other end of the spectrum, Jinkushal Industries launched the smallest IPO, raising just Rs 116.5 crore, highlighting the diversity of issuers.
Beyond fundraising, IPOs continued to serve multiple objectives for companies, providing capital for expansion, working capital and debt reduction, while enhancing visibility and offering exits to long-term investors.
Investor appetite remained strong through the year, reflected in exceptionally high subscription ratios.
Highway Infrastructure emerged as the most-subscribed IPO of 2025 with over 300 times subscription, followed by Indo Farm Equipment, Denta Water and Infra Solutions, Stallion India Fluorochemicals, Quadrant Future Tek and Standard Glass Lining Technology.
This robust demand translated into solid market performance, as nearly two-thirds of IPOs delivered positive outcomes, reflecting healthy investor selectivity and underlying market resilience.
Of the 103 companies that made their market debut, 70 delivered positive listing-day returns, while 32 listed at a discount.
Positive listing gains indicate investor confidence and disciplined pricing, while negative outcomes show the market is discriminating, not euphoric, Shah of Equirus Capital, said.
India's equity markets have given decent returns, primarily supported by a robust economic growth outlook and a recovery in the latter half of the year following a volatile start. The NSE Nifty 50 rose by over 10 per cent and BSE Sensex by over 9 per cent. PTI SP MR
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