2025 IPO Surge: Continued Growth Expected with Rs 2.58 Lakh Crore in Investments
India’s initial public offering (IPO) market is gearing up for a significant surge in the latter half of 2025, with a diverse array of companies ready to capitalize on robust investor interest. A total of Rs 2.58 lakh crore worth of IPOs are in the pipeline, including Rs 1.15 lakh crore that have already received approval from the Securities and Exchange Board of India (SEBI). The first half of 2025 has already seen 26 companies raise Rs 52,200 crore, with notable upcoming offerings from Tata Capital and LG Electronics, among others. This trend reflects a growing confidence among issuers and a resilient appetite from investors.
Strong IPO Pipeline
The Indian IPO landscape is witnessing an impressive lineup of offerings, with a total of Rs 2.58 lakh crore in IPOs anticipated. Out of this, Rs 1.15 lakh crore has already secured SEBI’s approval, while an additional Rs 1.43 lakh crore awaits clearance. The first half of 2025 has been particularly fruitful, with 26 companies successfully raising Rs 52,200 crore. HDB Financial Services led the charge with a substantial Rs 12,500 crore issue. Upcoming IPOs include Tata Capital, which is expected to offer Rs 17,200 crore, and LG Electronics, with a projected Rs 15,000 crore offering. Fintech company Groww is also in the mix, planning a Rs 5,950 crore share sale. Other notable names preparing to enter the market include Meesho, PhonePe, Lenskart, and WeWork India, among others.
Investor Participation and Market Dynamics
The surge in IPO activity is largely attributed to a growing confidence among issuers and a resilient investor appetite. In 2024, Indian markets witnessed 90 IPOs that collectively raised Rs 1.60 lakh crore, with the second half alone contributing Rs 1.30 lakh crore from 56 public offerings. This is a significant increase compared to the Rs 29,607 crore raised in the first half from 34 IPOs. Mutual funds have emerged as key players in this landscape, driving demand for IPOs. Bhavesh Shah, Managing Director and head of investment banking at Equirus Capital, noted that the increase in fundraising is fueled by heightened participation from both retail and institutional investors. The growing influence of mutual funds is evident, as they are increasingly investing in IPOs due to attractive valuations in the secondary market.
Impact of Private Equity and Systematic Investment Plans
The upcoming IPOs are also influenced by private equity (PE) exits, as many PE funds approach the end of their life cycles and seek to liquidate their investments. Mihir Vora, Chief Investment Officer at Trust Mutual Fund, highlighted that the uptick in IPOs is partly due to this trend. Additionally, the equity mutual fund sector has seen substantial growth, with assets rising by 22% in the year ending June 30, increasing from Rs 26.82 lakh crore to Rs 32.69 lakh crore. Systematic investment plans (SIPs) are contributing significantly to this growth, adding approximately Rs 27,000 crore each month to equity-oriented schemes. This influx of capital is expected to support the ongoing momentum in the IPO market.
Outlook for the Indian IPO Market
With a healthy pipeline of offerings and sustained investor interest, the Indian primary market appears well-positioned to maintain its momentum through the remainder of 2025. The combination of strong demand from mutual funds, the influence of private equity exits, and a growing number of companies preparing to list suggests a vibrant future for the IPO landscape in India. As more firms prepare to enter the market, the potential for significant capital raises remains high, reflecting a robust and dynamic investment environment.
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