India’s initial public offering (IPO) market is gearing up for a cautiously optimistic second half of 2025, according to industry experts who cite improving economic indicators and resilient investor appetite as key drivers. Despite enduring global headwinds including inflation, interest rate volatility, currency fluctuations and geopolitical disruptions, the domestic market has displayed notable resilience—underscored by Rs 45,351 crore raised in the first half of the calendar year.
This figure marks a 45 percent year-on-year surge compared to Rs 31,281 crore mobilized through IPOs during January–June 2024. However, the number of IPOs dropped from 36 in H1 2024 to 24 in H1 2025, a shift that analysts interpret as a signal of rising investor confidence in larger issue sizes. The average listing return hovered around 25 percent, with nearly 67 percent of IPOs opening at a premium, reflecting strong secondary market traction.
Major entrants to the primary market included HDB Financial Services, Hexaware Technologies, Schloss Bangalore and Ather Energy. Most IPOs combined fresh equity infusions with offers for sale, channelling funds toward expansion, debt repayment and working capital—demonstrating strategic use of public capital amid volatile conditions.
The Securities and Exchange Board of India (SEBI) received draft red herring prospectuses from 118 companies during this period, more than double the filings logged in the previous year. This pipeline—paired with the elevated fundraising volume—indicates robust future activity in the IPO space, provided market sentiment remains stable.
JM Financial emerged as the lead player in the merchant banking segment, managing 10 IPOs that collectively raised Rs 26,838 crore in the first quarter of FY26 alone, according to Prime Database. This dominant position points to growing consolidation in the advisory space as issuers gravitate toward firms with stronger institutional connectivity and market-making capabilities.
Ratiraj Tibrewal, CEO of Choice Capital Advisors, said that easing macroeconomic pressure is likely to bolster domestic conditions in H2 2025. “We expect inflation and interest rates to stabilize, with currency volatility tapering off. Geopolitical factors may linger, but the environment should gradually improve,” Tibrewal noted.
However, analysts remain circumspect about how H2 numbers will compare to last year’s unusually high base, when Rs 1.3 lakh crore was raised—much of it driven by blockbuster offerings and favorable foreign investor flows. Vinod Nair, Head of Research at Geojit Financial Services, warned that any slowdown in foreign or retail participation could impact performance, especially if global risk appetite weakens or U.S. monetary tightening resumes.
Nair added that earnings growth in the first two quarters of FY26 has so far been encouraging, and any forward movement on the India–U.S. trade deal could further buoy sentiment. Nevertheless, he cautioned that IPO valuations must remain attractive to avoid oversupply risks or tepid secondary demand.
Overall, the IPO market’s H1 trajectory reflects a well-calibrated investor base willing to participate in large offerings amid macroeconomic flux. H2’s outlook depends on continued fiscal stability, sectoral growth, and institutional confidence—especially as larger firms line up for public listing in banking, consumer tech, manufacturing and EV-related sectors.
As India approaches its 2047 development milestone, the IPO ecosystem is no longer merely a capital market instrument—it is increasingly positioned as a tool of economic inclusion, strategic financing, and investor democratization.
