The Indian primary market has concluded another spectacular year, solidifying its position as a global hotspot for capital raising. The calendar year 2025 proved to be a blockbuster, with a diverse array of companies successfully listing on Dalal Street to fuel their expansion plans.
A Record-Breaking Surge in Fundraising
According to a detailed analysis by domestic brokerage firm Motilal Oswal, the Indian IPO landscape has achieved unprecedented scale. Over the last two years, spanning CY24 and CY25 year-to-date, a staggering 701 companies raised a colossal ₹3.8 trillion. This figure comfortably surpasses the ₹3.2 trillion mobilized by 629 IPOs in the preceding five-year period from CY19 to CY23.
The momentum accelerated in 2025 alone, where 365 IPOs raised ₹1.95 trillion, breaking the previous record set in CY24 when 336 issues raised ₹1.90 trillion. This sustained activity underscores robust confidence in India's growth narrative from both domestic and international investors.
Diversification and Dominant Players
A key highlight of this IPO boom is its broad-based nature. Unlike previous cycles concentrated in a few sectors, companies from technology startups, fintech firms, and renewable energy businesses to traditional industries have successfully tapped the public markets. Motilal Oswal notes this diversification is a positive sign for the maturity of Indian capital markets, offering investors multiple avenues to participate.
The mainboard segment continued to dominate fundraising, accounting for 94% of the total in CY25. Out of the 365 IPOs last year, 106 were mainboard listings, which alone raised ₹1.83 trillion. The remaining 259 were SME IPOs, highlighting vibrant activity in that segment as well. Over the two-year period, mainboard IPOs from 198 companies mobilized ₹3.6 trillion, representing about 94.4% of all funds raised.
The Rise of Young Companies and Market Impact
An interesting shift has been observed in the profile of companies going public. Younger firms are leading the charge. Companies less than 20 years old contributed approximately 53% (₹2 trillion) of the total ₹3.8 trillion raised over CY24-25, accounting for 508 listings. This underscores the growing appetite of relatively younger, dynamic firms to access public capital for scaling operations.
The contribution of new listings to India's overall market capitalisation remained healthy at 3.1% in CY25, slightly lower than 3.3% in CY24 but demonstrating significant absorption capacity. Retail investor participation has been sustained, buoyed by consistent SIP inflows into mutual funds. Furthermore, domestic institutional investors (DIIs) poured in a net USD 87 billion in CY25 YTD, a remarkable 39% increase from the USD 63 billion in net inflows recorded in CY24.
Sustained Momentum Ahead
Looking forward, the outlook for the Indian IPO market remains decidedly optimistic. Motilal Oswal expects the strong issuance momentum to continue, backed by unwavering confidence from domestic retail investors and rich valuations in the secondary market attracting overseas capital.
The data paints a clear picture: India's capital markets are deeper, more diverse, and more accessible than ever before. The record-breaking IPO boom of 2024-25 is not an isolated event but a testament to the country's robust economic fundamentals and the evolving financial ecosystem that supports ambitious companies from inception to listing.
