India's primary market is witnessing an unprecedented boom, with a record-breaking number of initial public offerings (IPOs) hitting Dalal Street this year. As of November, a staggering 93 IPOs have been launched, and with three more set to debut today, the total fundraising is poised to surge past the monumental ₹1.6 trillion mark. This figure will officially surpass the previous year's record, making 2025 the highest fundraising year ever for India's IPO market.
Record Numbers and Upcoming Launches
Last year, 91 IPOs collectively raised ₹1,59,783.76 crore. The current year's tally is set to leap forward with the launch of three new offerings today: the much-anticipated Meesho IPO worth ₹5,421 crore, the Aequs IPO valued at ₹921 crore, and the Vidya Wires IPO at ₹300 crore. Once these are factored in, the total IPO fundraising for the year so far will reach an impressive ₹160,698.36 lakh crore.
This explosive growth signifies more than just a cyclical uptick. Bhavesh Shah, Managing Director & Head – Investment Banking at Equirus Capital, attributes the surge to a fundamental shift in the market. "The scale of fundraising shows the IPO market is maturing beyond cyclicality. What’s powering this surge is the emergence of high-quality, sharply differentiated businesses," he stated.
A Robust Pipeline and Macroeconomic Benefits
The momentum shows no signs of slowing. December alone is expected to see IPOs worth ₹30,000-40,000 crore, featuring marquee names like ICICI Prudential AMC, Fractal Analytics, and Wakefit. Looking ahead, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, predicts that with such a strong pipeline, the total amount mobilised in 2025 could touch a whopping ₹1.85 lakh crore.
He also highlighted the macroeconomic benefits of this trend. "Companies raising capital through the IPO market is good from the macro perspective since it brings down the cost of equity capital and encourages risk-taking and investment," Dr. Vijayakumar added. Analysis by Equirus further suggests this uptrend will remain robust, forecasting potential share sales of around $20 billion by the year 2026, with a possible highlight being the IPO of Reliance Jio.
Caution Amidst the Celebration
However, experts are advising a note of caution for investors. Dr. Vijayakumar pointed out that amid weakening listing gains, investors might turn more selective. The data supports this: the average listing gains have declined sharply from around 30% in 2023 and 2024 to approximately 9% in 2025. Many recent IPOs have also slipped below their issue prices, prompting retail investors to be wary of applying solely for quick 'listing pops'.
"If the IPO market is to remain healthy, the issue price has to be reasonable, and the trend of OFS (Offer for Sale) at unjustified valuations has to change," the veteran market analyst cautioned. Echoing this sentiment, Ratiraj Tibrewal, CEO of Choice Capital, expects the market to remain selective as investors adopt a wait-and-watch approach ahead of major upcoming offers like boAt, ICICI Prudential, and Milky Mist.
IPO Boom vs. Secondary Market Performance
In a notable divergence from historical trends, this year's primary market boom has occurred alongside a tepid secondary market. Typically, a booming IPO market coincides with a bullish secondary market. Dr. Vijayakumar explained the contrast: "The secondary market has been weighed down by three factors: one, the poor earnings growth; two, the sustained FII selling; and three, the booming IPO market sucking in lots of funds. So, yes, the booming IPO market has been weighing on the secondary market."
Despite this, Bhavesh Shah of Equirus does not see it as a structural risk. He argues that the scale mismatch makes it unlikely for IPOs to alter the market’s long-term direction. "Even record IPO fundraising of less than USD 20 billion is a drop in the ocean compared to India’s over USD 5 trillion market capitalisation. At best, they create short-term liquidity shifts, not structural risks," he concluded. The Indian IPO market, thus, stands at a historic peak, driven by quality issuances but navigating a new landscape of investor selectivity and secondary market dynamics.
