India’s IPO market is witnessing a fresh wave of activity, with companies rushing to raise funds. After a steady first half, the second half of 2025 is expected to be packed with major public issues.
In July alone, 11 mainboard IPOs have either been listed or are set to launch.
These include names such as Sri Lotus Developers & Realty, Laxmi India Finance, Shanti Gold International, Brigade Hotel Ventures, GNG Electronics, Indiqube Spaces, PropShare Titania (Property Share Investment Trust), Anthem Biosciences, Smartworks Coworking Spaces, Crizac Ltd, and Travel Food Services Ltd.
IPOs WORTH RS 2.58 LAKH CRORE IN THE PIPELINE
According to data from Prime Database, IPOs worth Rs 1.15 lakh crore have already been approved by the Securities and Exchange Board of India (Sebi) and are waiting for favourable market conditions to launch.
In addition, IPO proposals worth another Rs 1.43 lakh crore are under Sebi’s review. This puts the total IPO pipeline at Rs 2.58 lakh crore.
Several large offers are expected to drive this phase, including Tata Capital’s Rs 17,200-crore IPO, LG Electronics’ Rs 15,000-crore issue, and Groww’s Rs 5,950-crore share sale. Other upcoming names include Meesho, fintech unicorn PhonePe, Boat, WeWork India, Lenskart, Shadowfax, and Physics Wallah.
Some firms are looking to raise between Rs 1,500 crore and Rs 9,000 crore. Others in line include Pine Labs, Amagi, Wakefit, Urban Company, TableSpace and Shiprocket.
A STRONG FIRST HALF, BUT BIGGER ISSUES COMING
The first six months of 2025 (January-June) saw 26 companies raise Rs 52,200 crore via IPOs.
The biggest issue was HDB Financial Services, which mopped up Rs 12,500 crore. For comparison, 2024 saw 90 IPOs raising a total of Rs 1.60 lakh crore. The first half of 2024 had 34 IPOs that raised Rs 29,608 crore, while the second half brought in Rs 1.30 lakh crore through 56 offerings.
What makes the current pipeline stand out is not just the number of companies planning IPOs, but also the size of their issues. Many of the firms are backed by private equity and venture capital investors, and are now eyeing the public market as an exit route.
“IPOs are picking up as many PE funds are nearing the end of their life cycle and need exits,” said Mihir Vora, chief investment officer at Trust Mutual Fund, speaking to The Economic Times.
MUTUAL FUNDS PLAY A KEY ROLE
The surge in IPO activity is also being supported by mutual funds, which are deploying capital more aggressively in the primary market due to high valuations in the secondary market.
In the 12 months to June 30, equity mutual fund assets grew by 22%, rising from Rs 26.82 lakh crore to Rs 32.69 lakh crore. Systematic investment plans (SIPs) are adding around Rs 27,000 crore every month to equity-oriented schemes. This steady inflow gives mutual funds a regular supply of capital to participate in IPOs.
“The growth in fundraising through IPOs has been on the back of growing investor participation, both retail and institutional, as well as retail through institutional, particularly mutual funds,” Bhavesh Shah, managing director and head of investment banking at Equirus Capital told ET.
RETAIL INVESTORS AND SENTIMENT BOOST
Retail investors too have shown strong interest in several recent IPOs, with many being oversubscribed within hours. Positive listing gains for some companies have further improved sentiment. The high demand is a mix of long-term investing interest and short-term listing gains, although experts caution that not all issues will deliver strong returns.
With many companies rushing to complete their listings before the financial year-end and a stable economic outlook, the rest of 2025 may see a record number of public issues, provided market conditions stay favourable.