The Indian stock market is bracing for a year of significant volatility in 2025. Yet, in a striking contrast, the initial public offering (IPO) segment has been experiencing an unprecedented capital-raising frenzy. Companies from diverse sectors including technology startups, fintech firms, and renewable energy businesses have flocked to Dalal Street, seeking funds to scale their operations.
A Resurgent Primary Market Defies Expectations
Activity in the IPO space, which had slowed down after February, gained strong momentum in the second half of the year. This resurgence was fueled by receding fears of a global recession, which encouraged numerous companies to reactivate their delayed stake-sale plans in anticipation of improved market conditions. The sustained enthusiasm from retail investors, coupled with robust participation from overseas investors despite rich secondary market valuations, has made for another exceptionally busy year in the primary market.
This flurry of listings has not only kept the investment community engaged but has also significantly expanded the overall market size, cementing India's position as the leading IPO market globally.
Breaking Down the ₹1.21 Lakh Crore IPO Wave
Data reveals the sheer scale of this activity. In 2025, up until October, the Indian mainboard IPO market witnessed 81 issues, collectively raising a massive ₹1,21,042 crore from investors. A detailed look at the fundraising routes offers critical insight into market dynamics.
The most popular path was a combination of fresh capital issuance and an Offer for Sale (OFS). In total, 44 companies chose this hybrid route, accounting for 54% of all issues and raising ₹67,216 crore. This method indicates that a portion of the raised capital is infused into the company for growth, while the remainder goes to existing shareholders, including promoters and early investors, allowing them to partially exit.
Major IPOs like Tata Capital (₹15,512 crore) and HDB Financial Services (₹12,500 crore) utilized this combined approach. Separately, 25 companies launched only fresh equity issues, raising ₹14,083.16 crore, while 12 companies opted for a pure OFS, raising ₹39,742.95 crore. The OFS route itself saw record activity, with funds raised this year being the second highest since 2015, following the record ₹50,683 crore raised in 2024.
Post-Listing Performance: A Tale of Two Extremes
Despite the overwhelming investor response during the subscription period, the post-listing performance of these IPOs presents a mixed and cautious picture. A significant 47% of the newly listed companies, which is 38 out of 81, are currently trading below their issue prices. Some of these declines have been severe, leading to notable wealth erosion for investors who held onto the stocks.
Stocks like Glottis are trading at a steep 52.8% discount to their IPO price. Other notable underperformers include Gem Aromatics, Arisinfra Solutions, BMW Ventures, Laxmi Dental, OM Freight Forwarders, and Dev Accelerator, all down between 30% and 50%. Even some large issuances like JSW Cement and Vikram Solar have faced deep cuts, trading 24% below their offer price.
On the brighter side, 41 companies are trading in the green. The standout performer is Aditya Infotech, delivering multibagger returns with its share price soaring 124% above the IPO price. Electric vehicle maker Ather Energy has also richly rewarded its backers, with shares trading 112% higher. Other significant gainers include Stallion India, Fluorochemicals, Belrise Industries, and Epack Prefab Technologies, with gains ranging between 50% and 96%. LG Electronics, one of the year's largest IPOs, is also trading strong, 41.2% above its issue price.
This divergence in post-listing returns underscores the importance of selective investment and thorough due diligence, even in a booming market. Investors are advised to consult with certified experts before making any investment decisions.
