India’s primary markets have entered a new stage of maturity in 2025, with a surge in IPO listings, bigger issue sizes and stronger institutional involvement.
Record IPO Activity in 2025
The year saw 373 IPOs – 103 on the main board and 270 in the SME segment – raising roughly ₹1.95 lakh crore, which is about 28 % of all global IPO listings.
Larger Deal Sizes Show Growing Reliance on Public Funds
- Average main‑board IPO size grew from about ₹1,100 crore (2015‑2019) to around ₹1,570 crore (2020‑2025).
- Average SME issue size more than doubled, from ₹11 crore to over ₹24 crore.
These numbers indicate that companies are turning to the stock market more often for expansion capital.
Broad‑Based Listings Reduce Concentration Risk
Only 8‑14 % of total IPO volume came from mega‑issues above ₹5,000 crore, keeping the market balanced. Most activity was in the ₹100‑500 crore and ₹1,000‑2,000 crore ranges.
Institutional Investors Provide Anchor Support
Mutual funds participated in about 26 % of main‑board IPOs, with the top five asset managers accounting for roughly 20 % of total issue value. Their selective involvement adds credibility without crowding out other investors.
Funds Mainly Used for Real Growth
More than 75 % of the money raised in 2025 went toward expansion, new capacity, debt reduction or working capital. The biggest users were financial services, followed by manufacturing, industrials and consumer‑focused businesses.
Looking Ahead to 2026
- Expected 100‑120 main‑board IPOs and over 250 SME listings.
- Projected fundraising of ₹3.5‑₹4 lakh crore, driven by larger issue sizes and stronger governance.
- Growth is expected to stay above long‑term averages but without the excesses of the 2025 peak.
Overall, India’s primary markets are becoming a reliable engine for corporate financing, offering retail investors a more stable and diversified IPO landscape.
Remember, this is an overview, not a prediction. Do your own research before making any investment decisions.