India's IPO Market Hits Record $22 Billion as Listings Top 100
Indian companies raised the highest annual total ever in 2025, surpassing 100 mainboard IPOs for the first time since 2007 as domestic investors power the boom.
India led the global IPO market in 2025.
Indian companies raised $22 billion through initial public offerings—the highest annual total in the country's history. Mainboard IPOs surpassed 100 for the first time since 2007, making India the top market by deal count and among the top three globally by proceeds.
The surge happened even as foreign investors pulled back, underscoring the growing power of domestic capital.
The Numbers
India recorded over 100 mainboard IPOs in 2025, up from 75 in 2024. Including SME listings, total offerings exceeded 200.
Total capital raised hit $22 billion, eclipsing the previous record set during the 2021 global IPO boom. By comparison, the U.S. market saw roughly $75 billion in proceeds—larger in absolute terms but representing less dramatic year-over-year growth.
India ranked first globally in IPO count and third in total capital raised, behind only the U.S. and Hong Kong.
What Drove the Boom
Three factors fueled India's IPO surge.
Domestic investor flows dominated. Indian mutual funds and retail investors absorbed offerings that might have struggled in prior cycles. Systematic investment plans (SIPs)—regular monthly investments into equity funds—now channel over $3 billion per month into markets.
That money needs somewhere to go. IPOs provided fresh supply.
Second, private equity and venture capital sought exits. After a funding boom in 2021-2022 and a drought in 2023-2024, financial sponsors pushed portfolio companies to go public. Many had reached scale and needed liquidity for earlier investors.
Third, valuations held up. Despite global volatility, Indian equity multiples remained elevated relative to other emerging markets. Companies that might have waited for better conditions in other regions found willing buyers in Mumbai.
Foreign Investors on the Sidelines
The boom occurred despite net foreign selling.
Foreign portfolio investors (FPIs) pulled approximately $10 billion from Indian equities in 2025, according to NSDL data. Concerns about valuations, rupee weakness, and competition from Chinese markets prompted outflows.
Domestic institutions more than offset the selling. Mutual funds added aggressively, and retail participation in IPOs remained frenzied.
This shift matters. India's market is less dependent on foreign capital than it was a decade ago. Domestic savings now provide a stable demand base that can absorb supply regardless of global sentiment.
Notable Listings
Several high-profile offerings defined the year.
The largest IPO came from a major insurance company that raised over $2 billion. Financial services broadly led the volume, with banks, NBFCs, and fintech companies tapping markets.
Technology companies also featured prominently. Enterprise software, edtech, and logistics startups that had raised venture capital in earlier years found public market buyers.
Consumer companies—from quick-service restaurants to apparel brands—generated strong retail interest. These offerings often saw oversubscription exceeding 50 times.
Retail Frenzy
Individual investors drove demand to extremes.
Some IPOs attracted over 10 million applications. Popular offerings saw retail portions oversubscribed by 100 times or more.
The retail bid has transformed IPO pricing. Companies and bankers now expect massive oversubscription, which influences both valuation and allocation decisions.
The flip side is volatility. Some stocks more than doubled on listing day. Others fell below issue price within weeks. The gap between IPO hype and fundamental value remains wide.
How India Compares
India's IPO boom contrasts with subdued activity elsewhere.
China's onshore markets saw limited new offerings as regulators maintained tight controls on listings. Hong Kong recovered strongly—raising $75 billion, triple 2024's total—but activity concentrated in late-year listings from Chinese companies.
The U.S. had a solid year with 347 IPOs, up 55% from 2024, led by technology and AI-related deals. But the American market has matured; India's growth trajectory is steeper.
Southeast Asian markets remained quiet. Indonesia, Thailand, and Vietnam saw scattered offerings without the volume surge India achieved.
Risks Ahead
The boom carries risks.
Valuations in some sectors look stretched. Companies with minimal profitability have commanded multibillion-dollar market caps. When sentiment shifts, these names will be vulnerable.
Regulatory scrutiny is increasing. SEBI, India's market regulator, has tightened disclosure requirements and questioned pricing practices on several offerings.
And the foreign outflow, while offset by domestic buying, signals that global investors see risk. If domestic flows moderate or external conditions deteriorate, the IPO pipeline could slow.
2026 Outlook
Bankers expect continued activity.
The pipeline heading into 2026 includes additional financial services listings, technology companies that delayed offerings, and consumer businesses riding India's growth story.
The question is whether demand persists. Domestic inflows have been remarkably stable, but they're not guaranteed. A sharp market correction could pause the SIP machine that's been funding the boom.
For now, India's capital markets are open for business. The record-setting 2025 demonstrates what happens when a growing economy, rising savings, and limited supply of public equities collide.