India Emerges as a Leading IPO Market with USD 2.8 Billion Raised in Q1 2025 Despite broader global market uncertainties, 62 IPOs were listed on the National Stock Exchange and Bombay Stock Exchange
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India's Initial Public Offering (IPO) market continued to display strong resilience in the first quarter of 2025, securing a 22 per cent share of global IPO activity, according to the Q1 2025 IPO Trends Report by EY. Despite broader global market uncertainties, 62 IPOs were listed on the National Stock Exchange and Bombay Stock Exchange, collectively raising USD 2.8 billion in proceeds.
The report notes that the largest IPO in this period was that of Hexaware Technologies Ltd., which raised USD 1.0 billion, underlining sustained investor demand for technology sector offerings. Nevertheless, overall IPO activity in India witnessed a decline of approximately 20 per cent compared to the same period last year, reflecting a more cautious investor sentiment as the BSE SENSEX experienced a slight decline of 1.1 per cent.
Prashant Singhal, Partner and Markets Leader at EY India, observed that while the significant IPO proceeds demonstrate the strength of India's capital markets, the record-breaking mergers and acquisitions (M&A) activity in Q1 2025 further highlights the market's maturity. "Q1 2025 saw all-time high M&A deal volumes with transactions valued at billions of dollars, reflecting strong investor confidence and strategic investments. This M&A surge, driven by domestic activity and international interest, complements the IPO market, showcasing a healthy and dynamic Indian financial landscape. We anticipate continued momentum in both public and private markets as companies pursue growth," noted Singhal.
The report further highlights the diversity of India's IPO landscape, with notable activity across sectors such as Industrials, Real Estate, Hospitality and Construction, and Health and Life Sciences. The health sector, in particular, showed significant growth, contributing to a strong IPO pipeline. Despite some variation in listing performance, the presence of robust fundamentals in many companies is expected to sustain investor interest.
Favourable economic indicators and a dynamic stock market continue to reinforce investor confidence in India. The increasing participation of retail investors is reshaping the market, with an evident rise in the percentage of profitable IPO companies, suggesting a shift towards stronger market fundamentals.
Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader at the Indian member firm of EY Global, commented that India's IPO market remains a beacon of resilience and growth. "The strong performance in Q1 2025, despite global uncertainties, highlights the robust fundamentals and investor confidence in our market. We are optimistic that this momentum will carry forward, driven by supportive policies and a dynamic economic environment," Ranka added.
