Year-End IPO Rush Gains Momentum
India's capital markets are witnessing a significant surge in initial public offerings as two prominent companies, e-commerce platform Meesho and artificial intelligence firm Fractal Analytics, prepare to launch their public listings between late November and early December. This development marks one of the busiest periods for IPOs this year, according to sources familiar with the matter.
Detailed IPO Timelines and Valuations
Fractal Analytics will initiate the process for its ₹4,900 crore ($560 million) initial public offering in the first week of December, targeting a market listing by mid-December. The AI company's IPO comprises a fresh issue of equity shares worth ₹1,279.3 crore and an offer-for-sale component of up to ₹3,620.7 crore.
Meanwhile, Meesho is planning a substantial $800-850 million IPO during the last week of November, seeking a valuation between $8-8.2 billion. The e-commerce giant's offering will include both fresh capital raising and an offer-for-sale component, with subsequent listing expected early next month.
Broader Market Context and Trends
These two companies join an expanding roster of new-age startups aiming to go public in the current quarter, including prominent names like Groww, Lenskart, Pine Labs, and PhysicsWallah. This collective movement represents one of the most active periods in Indian capital markets during 2025.
Pranav Haldea, managing director at Prime Database, highlighted the exceptional market conditions. "We are seeing an amazing confluence of demand and supply," he stated. "With companies of different sizes, sectors and types coming to the market, there is also active demand from investors, primarily domestic institutions that are flush with retail money, looking for newer companies to invest in."
Historical data reveals a consistent pattern where nearly 60% of IPO volumes occur in the final three months of the year. Despite initial market volatility, 2025 has seen record numbers of IPO filings, with stability in secondary markets driving continued interest.
Meesho's IPO Specifics and Financials
Meesho, which recently received regulatory approval from Sebi, plans to raise ₹4,250 crore in fresh capital while offering 175.6 million shares through an offer-for-sale. The selling shareholders include Elevation Capital, Peak XV Partners, Y Combinator, and founders Vidit Aatrey and Sanjeev Barnwal among others.
The company has appointed Kotak Mahindra Capital, Axis Capital, Morgan Stanley India, JPMorgan, and Citigroup to manage the issue. Meesho intends to utilize the proceeds for multiple strategic initiatives including cloud infrastructure development through its subsidiary Meesh Technologies Pvt. Ltd, payment of salaries for machine learning, AI, and technology teams, branding and marketing activities, and funding inorganic growth through acquisitions.
Founded in 2015 by Aatrey and Barnwal, Meesho demonstrated strong revenue growth with FY25 operating revenue jumping 25% to ₹9,390 crore, though its net loss widened significantly to ₹3,941 crore from ₹327.6 crore in FY24.
Fractal Analytics' Strategic Plans
Fractal, established in 2000 by Srikanth Velamakanni and Pranay Agrawal, provides comprehensive AI solutions to major global enterprises. The company counts technology giants including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla among its key clients.
The company plans to deploy IPO proceeds toward strategic investments in its subsidiary Fractal USA, covering expenses for laptop purchases, establishing new office space in India, funding research and development, and supporting sales and marketing activities under Fractal Alpha. The funds will also facilitate inorganic growth through potential acquisitions and cover general corporate expenses.
Fractal has demonstrated robust financial performance with revenue from operations increasing 25.9% to ₹2,765 crore in FY25, while turning a profit of ₹220 crore compared to a loss of ₹54.7 crore in the previous fiscal year. The company has appointed Kotak, Morgan Stanley, Axis, and Goldman Sachs (India) Securities to manage its public offering.
India's Booming IPO Market
India's IPO market has shown remarkable resilience and growth throughout 2025 after a relatively slow start. According to a Bernstein report, Indian companies have raised $14 billion via IPOs this year, ranking fourth globally behind the United States ($53 billion), Hong Kong ($23 billion), and China ($16 billion).
Market data from Prime Database reveals an accelerating trend: the first two quarters saw only nine issues, followed by 46 listings in the previous quarter and 25 offerings in the current three-month period. This surge reflects growing confidence among both companies and investors in the public markets.
The pipeline remains strong with at least 30 additional companies, including Milky Mist Dairy Food, Curefoods India, Shiprocket, Capillary Technologies, and Wakefit Innovations, having received regulatory approval in the past six months, setting the stage for potential listings in 2026.
Haldea emphasized the significance of this trend for India's capital market ecosystem. "There is also a huge pipeline of companies with PE-VC investors looking to tap the market. It is very important that these investors get their exits as only then will they be able to raise money to invest in the next set of companies. It is a sign of a maturing capital market ecosystem," he noted.
The changing dynamics of investor participation are also noteworthy, with domestic institutions now playing a more substantial role in supporting IPOs, reducing the historical dependence on foreign investor participation.
