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India’s IPO Boom in 2025: What’s Driving the Record ₹2 Lakh Crore Fundraise
- Ripradaman R
- Dec 26, 2025
- 2 min read
Introduction
India’s IPO market reached a historic milestone in 2025.
Companies raised nearly ₹2 lakh crore through public issues.
Mainboard IPOs led the momentum amid strong investor demand.
The trend reflects confidence in India’s growth and capital markets.
Record-Breaking Fundraising in 2025
India witnessed its highest-ever IPO collections.
Nearly ₹2 lakh crore raised across mainboard and SME issues
Mainboard IPOs accounted for the majority of capital
Issue sizes increased compared to previous years
This marks a structural shift, not a one-off spike.
Why Mainboard IPOs Dominated
Large companies chose public markets over private funding.
Better valuations in public markets
Strong participation from institutional investors
Improved market depth and liquidity
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Key Sectors Leading the IPO Wave
Certain sectors stood out clearly.
Financial services and fintech
Infrastructure and capital goods
Consumer and retail-focused businesses
Renewable energy and manufacturing
Sector diversity reduced concentration risk.
Role of Retail and Institutional Investors
Investor participation expanded significantly.
Retail investors showed higher application volumes
Domestic institutions provided stability
Foreign investors selectively backed quality issues
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Market Conditions That Enabled the Boom
Multiple macro factors aligned.
Stable interest rate environment
Strong GDP growth outlook
Consistent regulatory framework
Improved corporate governance standards
These conditions encouraged companies to list.
Risks Investors Must Consider
Strong numbers do not eliminate risk.
Valuation excesses in select IPOs
Post-listing volatility in weak fundamentals
Over-subscription driven by sentiment
Selective investing remains critical.
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Conclusion
India’s IPO boom in 2025 reflects market maturity and investor confidence.
Record fundraising was driven by strong fundamentals and broad participation.
However, disciplined evaluation remains essential for long-term returns.
FAQ
Q1. How much was raised through IPOs in India in 2025?
Nearly ₹2 lakh crore, the highest annual total on record.
Q2. Which segment dominated IPO fundraising?
Mainboard IPOs accounted for the majority of funds raised.
Q3. Which sectors led IPO activity?
Financial services, infrastructure, consumer, and manufacturing sectors.
Q4. Did retail investors participate actively?
Yes, retail participation remained strong across multiple issues.
Q5. Are IPOs in 2025 risk-free investments?
No. Valuation and business fundamentals must be carefully assessed.
Citations
Moneycontrol
SEBI
NSE India
BSE India
Economic Times
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