India’s IPO Boom: A Record-Breaking Year for Fundraising
India’s primary equity market touched a historic high in 2025, with companies raising a record Rs 1.95 trillion through more than 365 initial public offerings (IPOs), making it the strongest year ever for fundraising, according to a strategy report by Motilal Oswal Financial Services.
The blockbuster performance comes on the back of an already robust 2024, when Rs 1.90 trillion was mobilised through 336 IPOs. Together, the last two years have seen Rs 3.8 trillion raised via 701 IPO, far exceeding the Rs 3.2 trillion collected over the entire five-year period from 2019 to 2023, the report noted.
Mainboard Issues Dominate Fundraising Activity
Mainboard issues continued to dominate fundraising activity in 2025, accounting for nearly 94% of the total capital raised. Of the 365 IPOs during the year, 106 were mainboard listings that together garnered Rs 1.83 trillion, while the remaining 259 SME IPOs contributed a relatively smaller share of funds.
Over the past two years alone, just 198 mainboard companies have raised Rs 3.6 trillion, underscoring their central role in capital formation. The year also stood out for marquee deals, including Tata Capital’s Rs 155 billion IPO in October 2025, the fourth-largest public issue in India’s history.
Broadening of Sector Participation
The report highlighted a broadening of sector participation. In 2025, non-banking financial companies (NBFCs) led fundraising with a 26.6% share, followed by capital goods, technology, healthcare and consumer durables. This marked a shift from 2024, when automobiles, telecom and retail dominated issuance. Notably, sectors such as utilities and private banking, which were active in 2024, saw no IPO fundraising in 2025.
Investor appetite remained strong, with IPOs oversubscribed by an average of 26.6 times over the last two years. SME IPOs, in particular, witnessed intense demand, with subscription levels crossing 100 times in several cases. About 55% of mainboard IPOs listed during this period are currently trading above their offer prices, indicating healthy post-listing performance.
Qualified Institutional Placements (QIPs) Slow Down
While IPO activity surged, qualified institutional placements (QIPs) slowed in 2025, with ₹718 billion raised so far, compared with a record ₹1.36 trillion in 2024. State Bank of India accounted for roughly 35% of QIP fundraising this year. Offers for sale (OFS) also remained muted at ₹204 billion, largely driven by stake sales from private promoters.
Future Outlook
Motilal Oswal expects the IPO pipeline to remain strong, supported by steady domestic institutional inflows and sustained retail participation through mutual fund SIPs. Emerging sectors such as renewable energy, quick commerce and app-based business models are likely to power the next wave of listings, further cementing India’s status as one of the world’s most vibrant equity markets.
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