IPO Activity Analyzed: Key Trends and Performance
Recent data from Motilal Oswal reveals a lot about which companies are going public and how those IPOs are doing. Over the last two years, just five industries – non-banking finance, capital goods, technology, healthcare, and consumer products – have dominated the market for initial public offerings (IPOs). This means a large chunk of new companies coming to the stock market have been in these specific areas.
Key Points
- Non-banking finance led IPOs in CY25 with 26.6%.
- Capital goods and technology followed closely in CY25.
- Automobiles led IPOs in CY24, dominating the market.
- Telecom, utilities, and private banking saw no IPOs in CY25.
- IPOs were heavily oversubscribed, a significant 26.6 times.
- Many listed IPOs are trading well above their initial prices.
CY25 IPO Leaders
Looking at the most recent year, 2025 (CY25), the top IPO performers were: non-banking finance companies (26.6%), followed by capital goods (9.5%), technology (9.2%), healthcare (6.4%), and consumer durables (6%). These were the biggest contributors to new companies going public in that year.
CY24 IPO Leaders
In 2024 (CY24), a different story unfolded. Automobiles took the lead (19.3%), with telecom (11.8%), capital goods (9%), retail (8.7%), and e-commerce (7.6%) close behind. This shows that market preferences shift from year to year.
Subscription Demand and Performance
A surprising detail emerged: IPOs have been incredibly popular, with subscriptions often being 26.6 times higher than the number of shares offered. This means lots of investors wanted to buy shares immediately after the IPO was announced. Companies in capital goods, non-banking finance, healthcare, technology, and e-commerce especially attracted strong interest.
Post-Listing Successes
Many of these IPOs have done very well after they started trading on the stock market. Over the past two years, 197 companies have gone public. Fifty-five percent of them are now trading above the price they initially sold for, and some are up by huge amounts – like Bharti Hexacom, which has increased its value by 214% since its IPO!
“Understanding these trends in IPO activity is crucial for informed investment decisions.”
