India lags behind US, China in capital raised via IPOs
What's the story
India's initial public offering (IPO) market has emerged as one of the most active in the world, according to the latest EY Global IPO Trends report. The country saw 108 companies list and raise $4.6 billion from capital markets in the first half of 2025. However, despite this strong performance, India still lags behind the US and China in terms of total capital raised through IPOs.
Comparison
India only contributed 8% to global IPO proceeds
In the first half of 2025, India contributed a mere 8% to the global IPO proceeds. The US and China dominated with 28% and 34%, respectively. This disparity highlights India's relatively smaller role in the global IPO market despite its high activity levels.
Market trends
Number of IPOs declined by 30% YoY
Despite the high number of listings, India's IPO market witnessed a 30% year-on-year fall in the number of IPOs in H1 2025. However, the total funds raised only dipped by 2% during this period. This indicates that while there has been a slowdown in activity, the quality and size of issues have remained intact.
Strategy
Cautious approach amid heightened global uncertainty
The EY report notes a strategic shift on both sides of the table. Issuers have become more selective about when and how they tap the markets, while the investors are leaning toward firms with stronger fundamentals and clearer growth trajectories. This cautious approach comes amid high global uncertainty, with geopolitical tensions making issuers more wary.
Outlook
H2 2025 may see pick-up in IPO activity
The second half of 2025 could see a pick-up in IPO activity, according to EY. A robust pipeline is in place from sectors such as technology, fintech, and healthcare. Many IPO-bound firms have already received regulatory clearances and are ready to launch as soon as market conditions turn more conducive. This optimism is backed by macroeconomic indicators turning more favorable, especially on inflation and liquidity fronts.