India’s IPO Market: A Bright Spot Amid Cautious Sentiment
In a year characterized by cautious sentiment in secondary markets, India’s IPO market has emerged as a surprising outperformer. While benchmark indices like the Nifty and Sensex have delivered modest returns of 6.2% and 5.3% respectively in 2025, fresh listings have raced ahead, providing investors with a much-needed alternative.
27 Out of 30 IPOs in Profit
As of now, 30 mainboard IPOs have listed in 2025, with an impressive 27 of them trading above their issue price. The average return stands at 25%, nearly four times the Nifty’s gain. While gold remains the top-performing asset class with a 31% year-to-date rise, IPOs have come a close second, significantly outshining broader equity markets.
Winners of the 2025 IPO Debuts
Among the standout performers, Prostarm Info Systems has gained over 112%, while Quality Power Electrical has more than doubled, delivering a remarkable 104.7% return since its February listing. Other notable gainers include Sambhv Steel Tubes (70.4%), Quadrant Future Tek (63.5%), Belrise Industries (45.2%), and Scoda Tubes (43.8%).
Additionally, companies like Ellenbarrie Industrial Gases, Crizac, Anthem Biosciences, and Stallion India Fluorochemicals have also delivered gains between 30% and 40%, despite broader market consolidation. However, not all IPOs have fared well; only three stocks—Indo Farm Equipment (-2.2%), Capital Infra Trust (-17.7%), and Arisinfra Solutions (-34.3%)—have slipped below their issue prices.
FPI Interest Remains in Primary Market
While foreign portfolio investors (FPIs) have been net sellers in the secondary market this year, their activity in the primary market tells a different story. According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, FPIs often exit the secondary market when valuations are high but continue to participate in IPOs and Qualified Institutional Placements (QIPs) where valuations are perceived as more reasonable.
“For 2025 up to July 19, total FPI sell figure stood at ₹1.10 lakh crore, while buying through the primary market stood at ₹27,239 crore,” Vijayakumar noted.
What’s Driving the IPO Momentum?
Analysts attribute the strong IPO run to a combination of healthy retail participation, attractive pricing, and sectoral diversity. This year’s offerings span a wide range of sectors—from electric vehicles (EVs) and clean technology to pharmaceuticals and industrials—broadening investor appeal.
Valuation is another critical factor. With stretched prices in the secondary market, investors are increasingly looking to IPOs for better entry points. Many recent IPOs have seen overwhelming demand, with overall subscriptions often exceeding 50 times, and in some cases, even surpassing 100 times.
While not every IPO has delivered blockbuster gains, the trend signals a meaningful shift in investor appetite. As long as secondary valuations remain elevated and new companies continue to price their offerings well, the momentum in the primary market is unlikely to fade.
In conclusion, the Indian IPO market has not only provided a refuge for investors seeking better returns but has also highlighted the resilience and potential of new companies entering the market. With a favorable environment for IPOs, the coming months could see continued interest and activity, making it an exciting time for investors.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times.)