India’s National Stock Exchange: A Rising Star in Global IPO Fundraising

In a significant testament to India’s burgeoning economic prowess and robust capital markets, the National Stock Exchange of India (NSE) has cemented its position as a global leader in initial public offering (IPO) fundraising. According to the latest report from S&P Global Market Intelligence, the NSE secured the fourth spot worldwide in the first half of 2025, amassing an impressive $5.51 billion in proceeds. This remarkable achievement places India’s premier exchange firmly behind only the Nasdaq Global Market, the New York Stock Exchange (NYSE), and the Nasdaq Global Select Market, underscoring its growing influence on the international financial stage.

Understanding the Importance of IPOs

An Initial Public Offering (IPO) marks a pivotal moment in a company’s lifecycle, transitioning from private ownership to public trading. For businesses, an IPO serves as a crucial mechanism to raise substantial capital for expansion, debt reduction, research and development, or simply to provide liquidity for early investors and founders. For the broader economy, a vibrant IPO market is a strong indicator of investor confidence, economic growth, and a healthy financial ecosystem. It enables job creation, fosters innovation, and allows the general public to participate in the growth stories of promising companies. The NSE’s elevated ranking is not just a statistical triumph; it reflects the deep-seated optimism surrounding India’s economic trajectory and the increasing sophistication of its capital markets.

A Closer Look at NSE’s Stellar Performance in H1 2025

Despite a somewhat cautious start to the year, marked by global and domestic equity volatility, the Indian primary market has demonstrated remarkable resilience and a strong capacity for rebound. The S&P data reveals that in the first six months of 2025, Indian markets witnessed 119 IPOs, collectively raising a substantial ₹51,150 crore (approximately $6.13 billion at current exchange rates). This figure, while representing fewer listings compared to the 157 IPOs in the first half of 2024, significantly surpasses the ₹37,682 crore raised during that earlier period.

This shift indicates a maturing market where the focus is increasingly on larger, more substantial offerings rather than a high volume of smaller ones. The average deal size has clearly grown, reflecting greater investor appetite for established, fundamentally strong companies seeking significant capital infusions. This trend is a positive sign, suggesting that both issuers and investors are becoming more discerning, prioritizing quality and scale.

Reflecting on 2024: A Foundation for Growth

The strong performance in the first half of 2025 builds upon a robust foundation laid in the preceding year. Indian exchanges concluded 2024 with an impressive ₹1.71 lakh crore ($20.5 billion) raised across 333 IPOs. This period was notably buoyed by landmark deals that captured both domestic and international attention. A prime example was Hyundai Motor India’s monumental $3.3 billion share sale. This mega-listing not only injected significant capital into the market but also signaled the confidence of large multinational corporations in India’s growth story and its public markets as a viable fundraising avenue.

Such large-scale listings often act as catalysts, drawing in more institutional investors and setting a positive precedent for other companies contemplating their public debuts. The success of these large IPOs in 2024 instilled confidence, paving the way for the robust activity seen in the first half of 2025.

Navigating Global Headwinds: Volatility and Resilience

The S&P report astutely points out that the primary market’s initial slower pace in early 2025 was largely attributable to prevailing global and domestic equity volatility. Global markets have been grappling with a confluence of factors, including persistent inflationary pressures in major economies, ongoing geopolitical tensions, and the uncertain trajectory of interest rates by central banks like the US Federal Reserve and the European Central Bank (ECB). These external factors often create a ripple effect, leading to heightened caution among investors and companies alike, prompting some to delay their IPO plans until market conditions stabilize.

Domestically, while India’s economic fundamentals remain strong, the equity market can still be susceptible to short-term fluctuations driven by factors such as election cycles, commodity price movements, or specific sector-related news. However, the report’s optimistic outlook, echoed by analysts from EY, suggests that this volatility was a temporary hurdle rather than a fundamental impediment. The “strong pipeline of IPOs” expected to hit the market in the coming months indicates a prevailing belief that the underlying economic momentum and investor appetite are robust enough to overcome these transient challenges.

The Regulatory Backbone: SEBI’s Role in Market Integrity

A crucial, often understated, factor contributing to the health and attractiveness of India’s IPO market is the vigilant oversight provided by the Securities and Exchange Board of India (SEBI). As the primary regulator for the securities market, SEBI plays a multifaceted role in ensuring market integrity, investor protection, and fair practices. Before a company can launch an IPO, it must file a Draft Red Herring Prospectus (DRHP) with SEBI, which then undergoes a meticulous review process. This involves scrutinizing the company’s financials, business model, risk factors, and compliance with various regulations.

SEBI’s stringent disclosure norms and continuous monitoring help build investor confidence by ensuring transparency and accountability. Recent initiatives by SEBI, such as streamlining the IPO application process, enhancing corporate governance standards, and introducing measures to improve market liquidity, have further contributed to making the Indian primary market an attractive destination for both issuers and investors. This robust regulatory framework is essential for maintaining trust and fostering long-term growth in the capital markets.

Big-Ticket Deals and the Anticipated Wave of Listings

The first half of 2025 was characterized by several significant IPOs, with HDB Financial Services, a non-banking financial company (NBFC) and a subsidiary of India’s largest private sector bank, HDFC Bank, leading the pack. Its impressive ₹12,500 crore ($1.5 billion) fundraising in June was the year’s largest deal so far. HDB Financial Services’ IPO was keenly watched, given its strong parentage and significant presence in the retail finance segment, offering a wide array of loans and financial products.

A sectoral analysis of the top ten IPOs by size reveals a clear trend: three originated from consumer discretionary companies and two from financial services. This highlights the ongoing strength of India’s domestic consumption story and the robust demand for financial products and services. The rising disposable incomes, growing middle class, and increasing urbanization continue to fuel the consumer discretionary sector, encompassing everything from retail and automobiles to leisure and entertainment.

The pipeline for the latter half of 2025 appears equally promising, with several high-profile filings already submitted to SEBI. These include Credila Financial Services Ltd’s ₹5,000 crore draft prospectus, filed in late June. Credila, a subsidiary of HDFC Ltd., is a leading education loan provider, tapping into India’s growing demand for higher education financing. Another notable submission in early July came from Anthem Biosciences, a contract research and manufacturing services (CRAMS) company in the pharmaceutical and biotechnology sector.

Furthermore, several prominent companies that had previously delayed their listing plans are now reportedly reviving them, contingent on favorable market conditions. These include:

• Oravel Stays (OYO): The hospitality tech giant, which had initially filed its DRHP in 2021, deferred its IPO amidst challenging market conditions and valuation concerns. A revival of its plans would signal renewed investor confidence in the tech and hospitality sectors.

• Fabindia Ltd: A well-known Indian retail brand focusing on artisanal products and traditional crafts, Fabindia’s IPO was also put on hold. Its potential listing would be a significant event for the consumer retail segment, showcasing the strength of ethical and sustainable businesses.

• Hero FinCorp: The financial services arm of the Hero Group, a major Indian conglomerate, Hero FinCorp’s IPO would add another significant player to the burgeoning NBFC space, catering to diverse lending needs.

The re-evaluation of these delayed listings underscores the improving sentiment and the expectation of a more conducive environment for public offerings, particularly for companies with strong brand recognition and established market positions.

Macroeconomic Stability: The Bedrock of IPO Acceleration

The S&P report’s assertion that IPO activity is expected to accelerate in the second half of 2025 is firmly rooted in India’s impressive macroeconomic stability. The Reserve Bank of India (RBI) projects the Indian economy, currently valued just under $4 trillion, to grow at a robust 6.5% in FY26, consistent with the previous fiscal year. This growth rate positions India as one of the fastest-growing major economies globally, driven by strong domestic consumption, significant government expenditure on infrastructure development, and a renewed focus on manufacturing through initiatives like “Make in India.” A growing economy naturally translates into higher corporate earnings, which in turn makes companies more attractive for public investment.

Crucially, the RBI’s accommodative monetary policy has been a significant tailwind. A total of 100 basis points in rate cuts since February, including a surprise 50-bps reduction in June, has injected much-needed liquidity into the financial system. Lower interest rates reduce the cost of borrowing for businesses, encouraging investment and expansion. They also make equity markets relatively more attractive compared to fixed-income instruments, drawing more capital towards stocks and, by extension, IPOs. This supportive monetary environment is instrumental in fostering a conducive climate for capital raising.

Market Performance and the Rise of Retail Investors

India’s benchmark Nifty 50 index has demonstrated remarkable resilience and a strong rebound, closing at 25,082.30 on July 14, marking a healthy 5.6% gain so far this year. This upward trajectory of the broader market instills confidence among investors, making them more willing to participate in new listings. A rising market generally ensures better post-listing performance for IPOs, which further fuels investor enthusiasm.

A notable trend contributing to the renewed vigor in the primary market is the rising retail investor participation. The democratization of investing through user-friendly online trading platforms, increased financial literacy, and the allure of potential quick gains have drawn a significant number of individual investors into the stock market. Retail investors are increasingly subscribing to IPOs, often driven by the promise of listing gains, thereby providing a strong demand base for new issues. This broad-based participation adds depth and liquidity to the market, making it more robust and less susceptible to the whims of a few large institutional players.

Sectoral Tailwinds: The Future of Indian IPOs

The S&P report also highlights strong listing potential in several key sectors, driven by evolving technological landscapes and India’s strategic economic priorities.

• Financial Technology (Fintech): India’s digital transformation journey has propelled the fintech sector into the spotlight. Companies leveraging technology to offer innovative financial services – from digital payments (e.g., UPI) and lending platforms to wealth management solutions and insurance tech – are poised for significant growth. The massive unbanked and underbanked population, coupled with increasing smartphone penetration, provides a fertile ground for fintech innovation, making these firms highly attractive to investors.

• AI-driven Firms: Artificial Intelligence (AI) is rapidly transforming industries globally, and India is no exception. Companies harnessing AI for efficiency gains, data analytics, automation, and personalized services across sectors like healthcare, e-commerce, and manufacturing are drawing considerable investor interest. The potential for disruptive innovation and scalable business models makes AI-driven firms prime candidates for successful IPOs, as investors seek to capitalize on the next wave of technological advancement.

• Industrial Tech: This broad category encompasses companies involved in advanced manufacturing, industrial automation, the Internet of Things (IoT) for industrial applications, and supply chain technology. With the government’s strong emphasis on boosting domestic manufacturing through initiatives like the “Production Linked Incentive (PLI) scheme” and significant investments in infrastructure, industrial tech firms are experiencing a surge in demand. These companies are critical to enhancing productivity, reducing costs, and improving the efficiency of various industries, making them attractive long-term investment propositions.

Conclusion: India’s Enduring Appeal

In conclusion, the National Stock Exchange of India’s impressive fourth-place ranking in global IPO fundraising during the first half of 2025 is a clear indicator of India’s growing economic might and the increasing maturity of its capital markets. With a dynamic stock market demonstrating resilience and strong returns, a supportive monetary policy fostering liquidity and investment, and an improving global backdrop, India’s IPO environment appears exceptionally poised for an even more robust second half of the year.

The confluence of these factors – a strong pipeline of quality companies, a vigilant regulatory framework, enthusiastic retail and institutional investor participation, and a thriving macroeconomic landscape – positions the NSE not just as a significant regional player but as an increasingly indispensable major global listing venue. As India continues its journey towards becoming a developed economy, its capital markets, led by the NSE, will undoubtedly play a pivotal role in facilitating this growth, offering unparalleled opportunities for both domestic and international investors.