IPO Mania 2.0: India's Primary Market Transitions From Startup Winter To Selective Spring

India’s IPO market in 2025 marked a decisive turn from the startup winter to a selective spring, with investors rewarding quality and sectoral leadership even as exuberance cooled in pockets.

Fundraising hit fresh highs, led primarily by healthcare, technology and non-banking financial companies (NBFCs), which emerged as the biggest contributors to new listings this year, according to Motilal Oswal.

Indian companies raised around Rs 1.95 lakh crore through more than 365 IPOs in 2025, surpassing the previous year’s record of Rs 1.90 lakh crore from 336 issues. Taken together, 2024 and 2025 mobilised nearly Rs 3.8 lakh crore across more than 700 IPOs, making this one of the most active stretches ever for India’s primary markets.

In terms of count, smaller and SME IPOs dominated, but the mainboard drove the value. In 2025, just over 100 mainboard IPOs accounted for nearly 94% of total funds raised, underscoring the dominance of large, established issuers. The year also saw one of India’s biggest offerings, with Tata Capital raising over Rs 15,500 crore, the fourth-largest IPO in India’s history. It did not surpass Hyundai’s record 2024 float, but reinforced the confidence of big names in public markets.

Unlike earlier cycles driven by narrow themes, the last two years saw a broader sectoral mix. Fundraising now spans financial services, capital goods, technology, healthcare and consumer businesses. In 2025, NBFCs led contributions, followed by capital goods and technology. Meanwhile, once-busy segments such as telecom and utilities, active in 2024, saw almost no IPO activity in 2025, reflecting quick shifts in sector preference.

A striking feature has been the youth of issuers. More than half of funds raised over the past two years came from companies less than 20 years old. Many are small individually, but together form the bulk of the new listing universe.

Demand for IPOs stayed robust. Over the past two years, IPOs were subscribed nearly 27 times on average, with SME issues particularly heavily bid, and mainboard IPOs drawing strong interest as well. Post-listing performance has also been largely constructive: of the 197 mainboard IPOs in the last two years, 108 are trading above issue price, and 14 are up more than 100%. Still, returns have been uneven, underscoring that selectivity matters — the defining feature of this “selective spring.”

• 2025: Rs 1.95 lakh crore raised through 365 IPOs

• 2024: Rs 1.9 lakh crore through 336 IPOs

• Total (2024–2025): Rs 3.8 lakh crore across 701 IPOs

• 2019–2023: Rs 3.2 lakh crore mobilised

• Mainboard dominance: 106 issues raised Rs 1.83 lakh crore

• Landmark IPO: Tata Capital Rs 15,500 crore in Oct 2025 (4th largest)

• Sector share in 2025: NBFCs 26.6%; Capital Goods 9.5%; Technology 9.2%; Healthcare 6.4%; Consumer Durables 6%

• Strong subscription: IPOs oversubscribed 26.6x on average over two years

With steady domestic inflows, healthy pipelines and strong institutional participation, the IPO market appears set for continued activity. Volatility may lead to pauses, but the broad direction indicates sustained issuance rather than a sharp slowdown.