India’s Rising Stature in the Global IPO Landscape
India has firmly established itself as a significant player in the global Initial Public Offering (IPO) arena, capturing an impressive 22% of global IPO activity in the first quarter of 2025 (January-March). According to the latest IPO trends report by EY, the country raised a total of $2.8 billion through 62 IPOs listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This achievement underscores India’s robust market position, even amidst global economic uncertainties.
Resilience Amidst Challenges
While the total number of IPOs in India saw a 20% decrease compared to the same period last year, the overall proceeds indicate a resilient market. The high value of these offerings reflects a steady demand for well-established companies with strong financials, as noted by EY. This resilience is particularly noteworthy given the cautious sentiment prevailing among investors globally.
The largest IPO of Q1 2025 was from Hexaware Technologies, which raised a remarkable $1 billion, signaling sustained investor interest in technology stocks. Other sectors, including healthcare, industrials, and real estate, also demonstrated significant activity, contributing to a diversified Indian IPO market.
Sectoral Growth and Investor Confidence
The EY report highlights robust participation across various sectors, with healthcare emerging as a major growth area. The health sector experienced a notable rise in IPO pipeline activity, indicating an increased appetite from investors for companies operating in this space. Prashant Singhal, Partner and Markets Leader at EY India, commented on the market’s strength, stating, “While the impressive IPO proceeds in Q1 2025 highlight the strength of India’s capital markets, the record-breaking Mergers and Acquisitions (M&A) market further demonstrates its maturity.” Singhal emphasized that both domestic and international investors are playing a crucial role in driving IPO and M&A activities, contributing to India’s dynamic financial landscape.
Surge in Retail Investor Participation
A significant trend in the Indian IPO market has been the growing involvement of retail investors. As investor dynamics shift, more individuals are participating in IPOs, driven by the potential for strong returns and India’s overall economic growth. The rise in profitable IPOs further boosts confidence among these investors, reinforcing the appeal of India’s capital markets. Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader at EY India, noted that India’s IPO market continues to demonstrate strong fundamentals, with increasing retail investor participation and a favorable economic environment.
Optimistic Outlook for 2025
Looking ahead, the outlook for the remainder of 2025 remains positive, with a healthy pipeline of companies set to launch IPOs in the coming months. Despite the cautious market sentiment, the strong performance in Q1 2025 sets a promising tone for India’s capital markets in the second half of the year. As India continues to attract both domestic and international companies seeking public listings, the country is expected to retain its position as a top destination for IPOs in 2025.
With a mix of robust fundamentals, growing investor interest, and sectoral diversification, India’s IPO market is poised for continued growth. The combination of a resilient market and an optimistic outlook suggests that India will remain a focal point for investors looking to capitalize on emerging opportunities in the global financial landscape.
For further insights, you can read more about the current state of the IPO market in India here.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of Economic Times.)