19-JULY-2025,02:00PM Despite global economic headwinds and a significant 30% decline in transaction volume, the Indian IPO market showcased remarkable resilience in the first half (H1) of 2025. According to Ernst & Young’s (EY) latest report, India witnessed 108 IPO transactions, raising a total of $4.6 billion, signalling confidence among investors and a strong foundation for economic momentum.
While the volume may have dipped compared to 2024, the capital raised underscores the enduring appeal of Indian equity markets, particularly among domestic investors and foreign institutional players betting on India’s long-term growth story.
Indian IPO Landscape in 2025 – A Mixed Yet Promising Picture
Volume Declines, But Value Holds Firm
According to the EY Global IPO Trends Report for H1 2025, the number of IPOs in India dropped by 30% year-on-year, reflecting a cautious investor environment amid volatile global conditions, including inflation concerns, geopolitical instability, and tightening monetary policies.
However, the Indian IPO market managed to mobilize $4.6 billion, nearly matching the capital raised during the same period last year. This discrepancy between volume and value indicates a shift toward fewer but higher-value offerings. Companies that did go public were generally larger, more stable, and had better fundamentals—suggesting a strategic shift by businesses aiming to list only when market conditions favor quality over quantity.
Sector-Wise Breakdown of Indian IPO Activity
Financial Services, Technology, and Energy Lead the Pack
In terms of sectoral contributions, financial services, technology, and renewable energy accounted for over 60% of the total capital raised through IPOs. Notable listings included fintech unicorns, green energy startups, and AI-driven enterprise software companies.
The Indian IPO market continues to evolve beyond traditional manufacturing and real estate, with investor interest now heavily favoring innovative, tech-first businesses that align with India’s “Digital Bharat” vision.
EY’s report points out that energy and infrastructure sectors, bolstered by government-backed initiatives and sustainability-focused investment mandates, also made significant contributions to the IPO pipeline.
Retail and Institutional Investor Participation
Domestic Appetite Outshines Global Volatility
While Foreign Portfolio Investors (FPIs) remained somewhat reserved due to global uncertainties, domestic retail and institutional investors played a vital role in supporting IPO activity. Systematic Investment Plans (SIPs), domestic mutual funds, and HNIs (High Net-worth Individuals) ensured a strong subscription base for most issues.
The growing financial literacy and increasing penetration of online brokerage platforms like Zerodha, Groww, and Upstox have empowered millions of Indians to directly participate in equity markets, further energizing the Indian IPO ecosystem.
Key Highlights from EY’s Indian IPO Report
Top IPOs and Market Response
EY’s report highlighted several standout IPOs in H1 2025:
FinZapp Technologies: Raised $600 million; oversubscribed 11x
EcoGrid Renewables: Raised $420 million; first major green energy IPO in 2025
SecurePay India: Digital payments company that raised $380 million with strong FII backing
Many of these IPOs witnessed robust listing-day performance, with price jumps ranging from 20% to 45%, signaling strong market optimism and well-calibrated issue pricing strategies.
Challenges Still Loom Over Indian IPO Market
Global Factors, Regulatory Tightening, and Investor Caution
While the Indian IPO market has held up relatively well, there are clear challenges on the horizon. Global macroeconomic pressures, including elevated interest rates in the US and EU, are expected to limit global capital flows into emerging markets.
Moreover, SEBI’s new compliance guidelines around promoter disclosures, lock-in periods, and ESG reporting requirements have lengthened IPO preparation timelines, particularly for first-time issuers.
Investor caution has also grown due to the mixed post-listing performance of some 2024 IPOs, which saw price corrections of up to 15–20% within the first six months. As a result, investors are now applying sharper scrutiny to IPO-bound companies’ balance sheets and long-term business models.
Indian IPO Market Outlook for H2 2025 and Beyond
Cautious Optimism Amid Strong Fundamentals
Despite headwinds, EY forecasts a gradual rebound in IPO volume in H2 2025, provided macroeconomic indicators stabilize and inflationary pressures ease. Several large-scale IPOs are already in the pipeline for the latter half of the year, including:
A public sector bank divestment
Two EV manufacturers preparing for debut
A leading Indian e-commerce giant eyeing dual-listing in Mumbai and Dubai
These upcoming listings are expected to revive momentum and bring renewed attention to the Indian IPO landscape globally.
Furthermore, with India projected to remain the world’s fastest-growing major economy in 2025, the capital markets are likely to remain an attractive funding avenue for high-growth businesses.
Expert Opinions on Indian IPO Resilience
Insights from Industry Leaders and EY Analysts
Ravi Mehta, Partner, EY India, stated in the report, “The Indian IPO market in H1 2025 reflects quality over quantity. It’s encouraging to see that despite global noise, investor confidence in India’s long-term story remains intact.”
Meera Bansal, fund manager at an Indian mutual fund, added, “We’ve become more selective, but we are very bullish on India’s new-age tech startups and clean energy plays. We expect more such IPOs to come in H2.”
Conclusion: Indian IPO Market Remains a Beacon of Strength in Emerging Markets
In summary, the Indian IPO market’s performance in H1 2025 reflects adaptability, resilience, and strategic maturity. While the total number of IPOs declined, the funds raised matched previous years, signifying growing investor trust in high-quality businesses and better issue management.
As India continues to lead global economic growth charts and deepen its capital markets, the IPO route will remain a crucial driver for enterprise funding and wealth creation for both issuers and investors.
Source : ANI
