Mumbai, December 27, 2025:
India’s primary equity market recorded a historic high in 2025, with companies raising a record ₹1.95 trillion through over 365 initial public offerings (IPOs), marking the strongest year ever for fundraising, according to a strategy report by Motilal Oswal Financial Services.
The remarkable performance builds on a robust 2024, when ₹1.90 trillion was mobilised via 336 IPOs. Together, the last two years have seen ₹3.8 trillion raised across 701 IPOs, surpassing the ₹3.2 trillion collected over the entire five-year period from 2019 to 2023, the report noted.
Mainboard Listings Dominate Capital Raising
Mainboard issues continued to dominate the market in 2025, accounting for nearly 94% of the total funds raised. Of the 365 IPOs during the year, 106 were mainboard listings that collectively raised ₹1.83 trillion, while the remaining 259 SME IPOs contributed a smaller portion. Over the past two years alone, 198 mainboard companies raised ₹3.6 trillion, highlighting their central role in India’s capital formation.
2025 also witnessed marquee deals, most notably Tata Capital’s ₹155 billion IPO in October, the fourth-largest public issue in India’s history.
Sector Participation Broadens
The year saw diversification in sector participation. 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 issuances. Notably, sectors active in 2024, such as utilities and private banking, saw no IPO fundraising in 2025.
Investor appetite remained robust, with IPOs oversubscribed by an average of 26.6 times over the last two years. SME IPOs saw particularly intense demand, with subscriptions crossing 100 times in multiple cases. Approximately 55% of mainboard IPOs listed during this period are currently trading above their offer prices, reflecting healthy post-listing performance.
QIP and OFS Activity Slows
While IPO activity surged, qualified institutional placements (QIPs) slowed in 2025, raising ₹718 billion compared with a record ₹1.36 trillion in 2024. The State Bank of India accounted for roughly 35% of QIP fundraising this year. Offers for sale (OFS) remained muted at ₹204 billion, largely driven by stake sales from private promoters.
Outlook for 2026
Motilal Oswal expects the IPO pipeline to remain strong, supported by steady domestic institutional inflows and continued retail participation through mutual fund SIPs. Emerging sectors such as renewable energy, quick commerce, and app-based business models are anticipated to drive the next wave of listings, further strengthening India’s position as one of the world’s most vibrant equity markets.
The report underscores India’s evolving primary market, with mainboard listings, sector diversification, and sustained investor interest driving record-breaking capital formation and reflecting confidence in the country’s long-term growth prospects.
