Indian IPO boom: How 2025 became the biggest year ever
What's the story
The year 2025 witnessed an unprecedented Initial Public Offering (IPO) boom in India, with companies across sectors raising a record $22 billion. The surge was largely driven by strong domestic investor demand, despite muted broader stock market activity. The momentum is likely to continue into 2026, with several large offerings already in the pipeline.
Record filings
Over 200 companies filed for IPOs in 2025
Despite a challenging year for Indian equities, the IPO rush didn't slow down. More than 200 companies received regulatory approval or filed draft prospectuses in 2025, the highest count in nearly three decades. September alone saw 25 companies list on India's main exchanges, making it the busiest month since 1997.
Market highlights
Notable IPOs and market performance
Among the standout debuts of 2025 were Tata Capital Ltd.'s $1.7 billion IPO and LG Electronics India's $1.3 billion listing. Urban Company Ltd.'s IPO also drew attention, with demand exceeding shares on offer by over 100 times. Despite slower earnings growth and weaker sentiment, Indian equities are on track for a 10th consecutive annual gain, albeit returns have lagged global peers.
Capital trends
Domestic capital dominates the IPO landscape
A defining feature of the 2025 IPO boom was the dominance of domestic capital. Indian investors accounted for about 75% of IPO demand, up from roughly 57% in 2021. Mutual funds and insurers drove much of this demand with systematic investment plans (SIPs) bringing in about $3 billion a month while insurers, pension funds and family offices added another $1-2 billion.
Investor impact
Retail investors play a key role in IPO boom
Retail investors also played a crucial role in the 2025 IPO boom. With 35% of IPO shares reserved for individuals, most retail portions were fully subscribed as savers increasingly shifted away from gold, real estate and fixed deposits in search of higher returns. This trend highlights the growing importance of retail participation in India's capital markets.