India's primary markets are witnessing an unprecedented boom, with fundraising through initial public offerings (IPOs) set to smash records in 2025. The total is expected to cross ₹1.61 trillion from 97 issues, surpassing the previous high of ₹1.59 trillion from 91 issues in 2024. However, the defining narrative of this historic year is the dramatic and assertive entry of the retail investor, marking a profound shift in the financial behaviour of Indian households.
The Retail Investor Takes Centre Stage
Retail participation has intensified its grip on the primary market in 2025. According to data from Prime Database, retail allotments now command a 24% share of the total amount raised this year. This is a significant jump from the 21% share recorded in 2024, though it remains below the 27% peak seen in 2023. In absolute terms, this translates to retail investors being allotted ₹36,431 crore across 93 IPOs—their highest capital absorption in three years and a clear rebound from the subdued ₹13,553 crore in 2023.
This surge is not just about volume but also conviction. Market experts attribute this turnaround to stronger deal quality and attractive pricing. Bhavesh Shah, Managing Director & Head of Investment Banking at Equirus Capital, notes that Indian IPOs continue to offer reasonably priced opportunities with strong near-term return potential, which appeals to momentum-driven retail investors seeking quick listing gains.
A Structural Shift in Savings
Analysts believe this retail revival signifies more than just short-term market excitement; it points to a fundamental behavioural change. Ravi Singh, Chief Research Officer at Master Capital Services, states that the shift reflects the continuing financialisation of savings in India. Retail investors are increasingly viewing equities as a core asset class, a structural trend that suggests participation will likely rise across all market segments over time.
The ecosystem supporting this shift is robust. Record systematic investment plan (SIP) flows, rapid growth in demat accounts, and user-friendly digital platforms have made equity investment a routine part of household financial planning. Ratiraj Tibrewal, CEO of Choice Capital, emphasises that these factors, combined with a strong equity rally and steady listing gains, have bolstered retail confidence.
Pipeline and Cautions for 2026
The frenzy is far from over. The market is bracing for an equally active 2026. Currently, 88 companies have received regulatory approval to raise ₹1.23 trillion, while another 110 firms are awaiting approval for issues worth approximately ₹1.51 trillion.
However, the outlook for retail participation next year appears tempered. Pranav Haldea, Managing Director at Prime Database, points out that several large technology offerings, which typically have a lower retail quota than the standard 30%, are lined up. This could impact the overall retail share, potentially keeping it within the 23–28% range. The key to sustaining broad-based participation, according to Ravi Singh, will be disciplined pricing and attractive offerings.
Other Investor Segments: HNIs Hold Steady, QIBs Soften
While retail surged, the participation of high-net-worth individuals (HNIs) remained stable. HNIs accounted for 13% of IPO allotments in both 2025 and 2024. In absolute terms, they received ₹19,724 crore this year, almost identical to the ₹20,050 crore allotted in 2024.
Participation from qualified institutional buyers (QIBs) softened slightly, absorbing 63% of IPO allotments in 2025 compared to 65% last year. In absolute numbers, QIBs were allotted ₹96,357 crore. Haldea suggests this minor decline is not significant and expects QIB allocation to stay in the 63–65% range, as any unsubscribed retail portion in large tech issues can still be absorbed by institutional players.
As marquee IPOs from companies like Aequs, Meesho, Vidya Wires, and Wakefit Innovations hit the market in December 2025, they underscore a transformative year. The Indian retail investor has emerged from the sidelines to become a steady, influential force, fundamentally reshaping the dynamics of the country's primary markets.
