Indian IPO market soars to record highs, Rs 3.8 lakh crore raised in two years

The Indian primary market has raised close to Rs 3.8 lakh crore from around 701 IPOs in the past two years, indicating a sharp increase over the Rs 3.2 lakh crore collected through 629 IPOs between 2019 and 2023, according to the recent report by Motilal Oswal.

The figures highlight that the IPO market has developed rapidly both in size and breadth, due to increased investor confidence in Indian equities, as per the report.

The report counts 2025 among the best years for the market as approximately 365 IPOs done up to this point have already raised Rs 1.95 lakh crore, which is more than the record of Rs 1.90 lakh crore set in 2024 through 336 IPOs.

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The mainboard sector has once again emerged as the key player in the industry, raising 94 per cent of the total amount in 2025, a figure very close to the previous year.

Mainboard IPOs have pulled in nearly Rs 3.6 lakh crore from 198 companies during the last two years alone; this indicates that large issuances continue to enjoy solid demand.

The report has pointed out that the SME segment has also continued to grow very lively, with the number of listings.

The report indicated that sector diversity had improved significantly. In the past few years, the trend was that IPOs were concentrated in limited sectors; during the last two years, however, firms have launched IPOs that come from a much broader range of industries, IANS, citing the report, said.

In 2025, the non-banking financial companies (NBFCs) were the largest contributors, followed by capital goods and technology, along with healthcare and consumer durables sectors. This marked a clear change from 2024, when automobiles, telecom, retail, and e-commerce were major players in new listings.

Surprisingly, some sectors that raised huge amounts in 2024, such as telecom, utilities, and private banking, saw no IPO fundraising in 2025.

According to the report, this transition highlights that the leadership of different sectors in the IPO market keeps altering depending on the market's situation and the investors' preferences.

The trends of company age and size were also very prominent. In the last two years, the report pointed out that younger companies, that is, companies which are not more than 20 years old, secured roughly 50 per cent of the total IPO funds.

Regarding the size, it was the small-cap companies that got the biggest share of funds, comprising over 50 per cent of the total capital, while only a few large companies contributed to the remaining capital that was already significant.