IPOs in India – FY 2025

In FY25, the Indian IPO market remained resilient amid global economic volatility and shifting investor sentiment. According to KPMG’s analysis, India witnessed 80 mainboard IPOs, marginally higher compared to 76 in FY24, with total capital raised to the tune of INR 1,630 billion, a significant increase compared to INR 619 billion in the previous year.

Global context and market dynamics

Globally, IPO activity declined in calendar year 2024, with 1,159 listings raising USD 119.1 billion, down 10 per cent from 2023. The National Stock Exchange of India (NSE) occupied the top spot in terms funds raised, vis-à-vis global stock exchanges, edging ahead of NASDAQ. The leading stock exchanges in China witnessed a considerable decline in listings owing to tighter scrutiny of new listings, resulting in the Hong Kong Stock Exchange (HKEX) as the preferred listing destination. The HKEX witnessed an 80 per cent increase in total capital raised

Indian market trends and performance

FY25 was a volatile year for the Indian capital markets. While the continuity in the central government brought relative stability, the second half of the fiscal year witnessed consistent net FPI sell-off in the equities segment, consequently leading to subdued IPO activity in Q4 FY25, which witnessed only 11 IPOs. April 2025 witnessed net FPI outflows to the tune of ~INR 202 billion, driven by the outflows in the debt segment. However, net equity segment’s inflows flipped to the positive side, supported by relative easing of trade restrictions by the US. Overall, India witnessed 80 mainboard IPOs (up from 76 in FY24), with QIB and retail oversubscription averages rising to 102x and 35x, respectively. Venture funding also improved to ~USD 15 billion, up from USD 12.5 billion in FY24.

Quarterly breakdown

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Q1 FY25

13 IPOs
INR 166 billion raised
70 per cent average listing gain

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Q2 FY25

26 IPOs
INR 344 billion raised
81 per cent average listing gain

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Q3 FY25

30 IPOs
INR 955 billion raised
50 per cent average listing gain

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Q4 FY25

11 IPOs
INR 165 billion raised
105 per cent average listing gain

Sectoral insights

The automotive, consumer discretionary and industrials sectors led in total funds raised, The information technology sector topped listing-day gains at 43per cent, followed by telecommunication and financial services.

Interestingly, smaller IPOs (issue size < INR 2 billion) outperformed larger ones (> INR 50 billion) in listing-day gains, averaging 37 per cent versus 29 per cent. The green energy segment, a subset of industrials, also performed well, with four IPOs averaging 35.7 per cent gains.

Conclusion

FY25 marked a strong year for Indian IPOs, with increased participation, robust sectoral performance, and global recognition. Despite macroeconomic challenges, India’s capital markets showcased depth and investor confidence, positioning the country as a leading IPO destination globally.