The Indian capital market in 2025 is witnessing its busiest and most attractive phase so far. The flood of IPOs has captured investors’ attention, and enthusiasm for new issues is steadily increasing. Data shows that companies have raised over Rs 1 lakh crore through IPOs so far this year, making 2025 a record-breaking year.
While IPOs were earlier seen only as a tool for companies to raise capital, they have now become a high-growth entry point for investors. Let us understand how IPOs are proving to be a game-changer for Indian investors.
What’s Happening?
The Indian IPO market has shown tremendous growth in recent years. In 2024, a record 331 IPOs were launched, raising a total of Rs 1.68 lakh crore across the mainboard and SME platforms. This was not only a big leap compared to previous years but also set the record for the highest number of IPOs in Asia. In the coming period, strong pipelines in sectors like fintech, e-commerce, and specialised manufacturing are expected to sustain this momentum.
Even though the number of IPOs in 2025 has been slightly lower, their impact has been significant. As of October 2, 2025, India has seen 78 mainboard IPOs raising, or expected to raise, a total of Rs 1,16,754 crore, as some IPOs are yet to be listed. Among them, Stallion India Fluorochemicals and Quality Power Electrical have more than doubled investors’ capital in just nine months. Additionally, companies like Aditya Infotech, Prostarm Info Systems, and Ather Energy are generating expectations for multi-bagger returns.
IPO Boom – The Actual Truth
In FY25, the Indian primary market showed tremendous growth, with 105 companies raising Rs 2.11 lakh crore through IPOs, OFS, and FPOs. FY26 is continuing at a similar pace, as 75 companies have already received approval and 90 companies are in SEBI’s queue.
However, there are several worrying aspects behind this surge. Companies are artificially enhancing their financials to secure higher valuations. As a result, 38% of IPOs in 2024 and 22% in 2025 are trading in the negative. On the SME platform, 79 out of 212 new listings have already gone into losses. Additionally, promoters are using the IPO boom to increase their personal net worth, leading promoter holdings in the top 500 companies to drop to 40%.
IPO Performance in 2025
In the first nine months of this year, the IPO market has shown mixed performance. While two top performers delivered excellent returns, six companies gave returns between 40% and 90%. Additionally, 20 IPOs delivered double-digit returns, and 10 IPOs provided single-digit returns. However, the remaining 30 IPOs either gave no profit to investors or resulted in losses.
According to data, out of all IPOs, 38 benefited investors, five companies are still stuck at their issue price, and 25 IPOs are currently trading in the red. This clearly shows that while there are opportunities in the IPO market, not every issue guarantees success.
What’s in it for Investors?
IPOs are no longer just a means for short-term listing gains but also offer an opportunity for long-term wealth creation. In 2025, several IPOs listed at a 20%-50% premium on the first day, while some, like Stallion India Fluorochemicals and Quality Power Electrical, provided investors with multi-bagger returns. This clearly shows that the right IPO can offer strong potential for long-term investment.
The major advantage of IPO investing is that it allows investors to become part of strong and rapidly growing companies from an early stage. However, there are risks as well. Oversubscription, high valuations, and market volatility can impact returns. In the past two months, India’s IPO market has seen over 80 listings, raising around Rs 35,000 crore from the mainboard and SME platforms. Despite this, the average return for investors was only 7%, and out of 31 mainboard companies, 16 are trading below their issue price, highlighting the challenges of recent listings.
What’s Next?
India’s primary market is on track to break records in 2025. So far, mainboard IPOs have raised over Rs 1 lakh crore, with three months remaining in the year. Historically, this is only the third time this level has been crossed.
According to CNBC TV18, Abhinav Bharti, Head of India Equity Capital Markets at JP Morgan, said that strong momentum continues in the Indian capital market, and a positive IPO pipeline remains in place for the last quarter of the year. He mentioned that the total capital raised so far this year has reached approximately $42-43 billion, including $10-11 billion from IPOs. If this trend continues for the full year, total capital raising could reach $55-60 billion, making it India’s second-largest capital market volume after 2024.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
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