India’s primary equity market reached an all-time high in 2025, with companies raising a record Rs 1.95 trillion through over 365 initial public offerings (IPOs), marking the strongest year ever for fundraising, according to a Motilal Oswal Financial Services report.
This milestone follows an already robust 2024, which saw Rs 1.90 trillion mobilised through 336 IPOs. Together, the last two years have witnessed Rs 3.8 trillion raised via 701 IPOs, far surpassing the Rs 3.2 trillion collected over the entire five-year period from 2019 to 2023.
Mainboard Dominates IPO Fundraising
Mainboard listings continued to lead the capital-raising activity, accounting for 94% of total funds in 2025. Out of 365 IPOs, 106 were mainboard issues, raising Rs 1.83 trillion, while 259 SME IPOs contributed a smaller share. Over the past two years, just 198 mainboard companies have raised Rs 3.6 trillion, highlighting their central role in India’s capital formation.
The year also featured marquee deals, including Tata Capital’s Rs 15,500 crore IPO in October 2025, the fourth-largest public issue in Indian history.
Sector Trends and Investor Demand
Sector participation broadened significantly in 2025. Non-banking financial companies (NBFCs) led fundraising with a 26.6% share, followed by capital goods, technology, healthcare, and consumer durables. This marked a shift from 2024, when automobiles, telecom, and retail dominated IPO activity.
Investor appetite remained strong, with IPOs oversubscribed by an average of 26.6 times over the last two years. SME IPOs saw intense demand, with subscription levels exceeding 100 times in several cases. About 55% of mainboard IPOs are currently trading above their offer prices, reflecting robust post-listing performance.
Meanwhile, qualified institutional placements (QIPs) slowed in 2025, with Rs 71,800 crore raised compared to a record Rs 1.36 trillion in 2024. Offers-for-sale (OFS) remained muted at Rs 20,400 crore, mostly driven by private promoter stake sales.
Outlook for 2026
Motilal Oswal anticipates that the IPO pipeline will remain strong in 2026, supported by steady domestic institutional inflows and continued retail participation via mutual fund SIPs. Emerging sectors such as renewable energy, quick commerce, and app-based business models are expected to drive the next wave of listings, further cementing India’s position as one of the world’s most vibrant equity markets.
