Indian IPO Market Analyzed

In 2025, India saw a huge boost in companies going public, raising a total of $14.2 billion – that’s the fourth largest amount ever! The United States led the way with $52.9 billion, followed by Hong Kong at $23.4 billion and China at $16.2 billion. This means Indian companies raised around Rs 85,241.08 crore from investors during this time, but this number doesn’t include three very large IPOs that are currently underway.

Key Points

• India’s IPO fundraising was the third highest in the last five years.
• Over Rs 85 billion was raised from companies through IPOs in 2025.
• Foreign investors are investing heavily in new IPOs ($5 billion).
• Secondary markets saw significant FII outflows ($18 billion) this year.
• New IPOs have outperformed market indices in recent quarters (5/7 quarters).
• Smaller IPOs (under $20 million) have delivered stronger returns (40%).

Despite some foreign investors pulling money out of the overall stock market (called FII outflows), a lot of them have been investing in these new company IPOs. This is interesting because the stock market as a whole hasn’t been doing so well.

A recent look at 161 companies that went public since January 2024 shows that investing in these new companies has often been better than just holding onto the standard market index, like the Nifty. In fact, about half of these new companies have performed better than the Nifty in the last six months.

On average, these IPOs have increased in value by about 22% since they went public. This is good news for investors. However, some companies didn’t do as well, and some held onto their stocks for longer than three months and had negative returns.

The types of companies that went public also mattered. About 16% of the IPOs were from companies in consumer technology, green energy, or the digital sectors. It seems smaller IPOs, especially those raising less than $20 million, tend to do better after they go public. The biggest IPOs, raising over $1 billion, haven’t performed as well.

“Investing in new IPOs offers a chance to outperform the broader market, but careful consideration of size and sector is key.”