Although 2025 is expected to be a year of heightened volatility for the Indian stock market, the IPO segment continues to ride the wave of a capital-raising spree for unlisted stock investors.
Companies ranging from tech startups and fintech firms to renewable energy businesses have entered Dalal Street as a means to expand the scale of their operations.
Most issues have received strong investor response, even in cases where big-ticket IPOs, which typically struggle to attract attention, have drawn robust demand, flipping the usual script.
Sustained interest from retail investors, along with the robust participation from overseas investors amid rich valuations in the secondary market, has contributed to another busy year for the primary market.
Activity, which had remained muted after February, picked up momentum in the second half, fueled by easing fears of a global recession and prompting several companies to revive stake-sale plans that were previously deferred in anticipation of better market conditions.
The flurry of listings not only kept investors busy but also expanded the size of the overall market, making the country the leading IPO market globally.
Majority of IPOs choose combined OFS and fresh capital route
In 2025 (till October), the Indian IPO market witnessed a total of 81 mainboard issues, raising ₹1,21,042 crore from Dalal Street investors. Of these, 44 companies raised funds through a combination of fresh capital and offers for sale (OFS), accounting for 54% of the total issues, or ₹67,216 crore, according to data compiled by LiveMint.
IPOs with both OFS and fresh capital indicate that a portion of the funds is directed towards the company, while the remaining goes to existing shareholders.
For instance, some of the largest IPOs in 2025, such as Tata Capital ( ₹15,512 crore) and HDB Financial Services ( ₹12,500 crore), offered shares through both OFS and fresh capital.
Out of the 81 issues, 25 companies launched fresh equity issues, collectively raising ₹14,083.16 crore, as per LiveMint.
Meanwhile, 12 companies opted solely for offers for sale, raising ₹39,742.95 crore. Among the notable OFS offerings was LG Electronics, which raised ₹11,607 crore and received a strong response, being subscribed 54 times.
Meanwhile, the funds raised from OFS this year so far are also the second highest since 2015. In 2024 companies raised a record ₹50,683 crore from the OFS route.
Offers for Sale (OFS) allow large shareholders and early investors to sell existing shares, with the proceeds going to them, in contrast to fresh issues, which provide companies with capital for investment.
Last year, 91 large firms went public on the BSE and NSE, raising a record ₹1.6 lakh crore through initial public offerings (IPOs).
Nearly 50% of IPOs trade below issue prices
Though IPO activity remains strong, post-listing returns so far have been modest, with 38 companies, or 47% of the 81 listed, currently trading below their issue prices. Losses have reached up to 52.8%, resulting in significant wealth erosion for early investors who remained invested in these counters.
Among the worst performers are Glottis, trading at a 53% discount to its IPO price, along with Gem Aromatics, Arisinfra Solutions, BMW Ventures, Laxmi Dental, OM Freight Forwarders, and Dev Accelerator, all down between 30% and 50% from their issue prices.
Even some big-ticket IPOs have faced deep cuts, including JSW Cement and Vikram Solar, each trading 24% below their IPO price.
In contrast, 41 companies are trading with gains. Aditya Infotech leads the pack, delivering multibagger returns with shares trading 124% above the IPO price. Ather Energy has also rewarded investors handsomely, trading 112% higher than its issue price.
Other notable gainers include Stallion India, Fluorochemicals, Belrise Industries, Prostarm Info Systems, Anlon Healthcare, Quality Power Electrical, Jain Resource Recycling, Epack Prefab Technologies, and Anand Rathi Share Stock, currently up between 50% and 96%.
LG Electronics, one of the largest IPOs this year, is trading 41.2% above its issue price.