The Indian primary market recorded the highest fundraising in 2025, as companies collected 1.95 lakh crore rupees through 365 initial public offerings (IPOs), beating the previous record of 1.90 lakh crore through 336 IPOs in 2024, says a report from Motilal Oswal. The two years marked one of the most active phases ever in India’s primary market, with the cumulative fundraising reaching nearly 3.8 lakh crore rupees through over 700 IPOs.
Mainboard Listings Drive the Bulk of Funds
Although smaller and SME IPOs dominated in terms of sheer numbers, the larger mainboard listings accounted for almost all of the money raised.
One of the highlights was the issue of Tata Capital, an NBFC from the Tata Group, which raised more than Rs 15,500 crore. Though being the largest IPOs in India’s history, it did not surpass Hyundai’s record-breaking issue in 2024. However, it showed the confidence of major companies in turning to public markets. Other major issues included HDB Financial Services, which raised Rupees 12,500 crore, LG Electronics India with Rupees 11,607 crore, and ICICI Prudential Asset Management, which collected Rupees 10,602 crore.
Sectoral Shifts
The mix of industries coming to the market has broadened in 2025, with non-banking financial companies, or NBFCs, being the biggest contributors, followed by capital goods firms, technology, and healthcare companies.
However, sectors such as telecom and utilities, which were very active in 2024, have not held any IPO activity in 2025. Another striking feature to be considered is how old the companies were when they were going public. The firms that raised more than half of the money during the past two years were formed just less than 20 years ago. Many of these businesses are relatively small, but together they represent the largest share of new listings, showing the ambition of younger companies to raise capital early.
Investor Demand Remains Strong
Investor appetite for IPOs has been robust. Over the past two years, IPOs were subscribed nearly 27 times on average, with keen investor interest visible across the sections, such as smaller and SME IPOs and large mainboard IPOs.
However, post-listings, stocks showed mixed performance with positive signs. While more than half of the mainboard IPOs from the past two years were trading above their offer prices, not every IPO succeeded in the secondary market, reminding us of the need for meticulous analysis before investing.
Other Fundraising Routes Slow Down
While the IPO market showed intense participation, other fundraising methods slowed in 2025. Qualified Institutional Placements, or QIPs, suffered severely with fewer numbers compared to the previous year. The State Bank of India held a large share of the funds raised through this route.
Offers for Sale, or OFS, also declined. The slowdown suggests that fewer promoters chose to reduce their ownership this year.
Outlook for the Future
Looking ahead, the IPO pipeline remains strong. Domestic investors continue to show keen interest as mutual funds are making steady inflow, and large companies are expected to keep coming to the market. While sudden swings in the stock market could cause temporary pauses, the overall trend points to continued activity rather than a sharp slowdown.
