India’s initial public offering (IPO) market has shown remarkable momentum in 2025, with around ₹2.2 lakh crore raised from 111 issues so far, reflecting both strong corporate appetite and deep investor interest.
Several key drivers are powering this wave:
- Massive domestic liquidity: Systematic Investment Plan (SIP) inflows are running at roughly ₹30,000 crore per month, reducing issuers’ dependence on foreign capital and boosting confidence in local fundraising.
- Expanding retail participation: Digitisation and easier access via UPI and online platforms are drawing more first-time investors to IPOs, with many recent issues oversubscribed by more than 35 times.
- Regulatory and policy clarity: The streamlined process for IPO approvals and clearer regulation have made listing procedures faster and more predictable for companies.
- Quality of issuers improving: A newer category of well-governed, mid-sized companies with strong fundamentals is opting for public listings — boosting both market confidence and attractiveness for investors.
Going forward, investment banks expect the momentum to continue with a projected 20 % rise in main-board listings next year. While vibrancy is high, experts caution that the durability of this boom will depend on valuations remaining disciplined, issuers delivering on promises, and broader economic conditions holding up.
