India’s stock market is experiencing a significant upswing driven by a surge in initial public offerings (IPOs), fueled largely by domestic retail investors. This trend has created a vibrant fundraising landscape within the country despite global economic uncertainties and trade tensions.
In just the past week, several major companies, including WeWork India, LG Electronics’ Indian arm, and Tata Capital, have successfully completed IPOs, raising record amounts of capital. This process allows privately held firms to enter public markets by selling shares to investors for the first time, diverging from secondary markets where existing stocks are traded.
Data from investment bank Kotak Mahindra Capital Company indicates that 79 companies have collectively raised approximately $11.5 billion in the first three quarters of 2025. With more IPOs anticipated in the coming months, projections suggest that the total could exceed $20 billion by year’s end. This figure excludes fundraising by small and medium-sized enterprises, indicating a wide range of sectors—from technology and e-commerce to healthcare and infrastructure—actively seeking investment through public offerings.
According to V Jayasankar, managing director at Kotak Mahindra Capital, the Indian market is offering investors a unique diversity of opportunities not commonly found elsewhere. A combination of institutional funds and systematic investment plans, particularly from small retail investors contributing to mutual funds, is significantly bolstering the demand for IPOs.
Industry experts attribute the IPO boom not only to heightened investor interest but also to India’s robust economic growth in recent years, which has created a substantial pipeline of mature companies ready to enter the public sphere. Abhinav Bharti of JP Morgan anticipates that the trend will lead to a steady state where India regularly sees $20 billion in IPO activity.
However, this exuberance brings caution. Experts are advising potential investors to conduct thorough research on the financial health of companies before making investments. Kranthi Bathini from WealthMills Securities notes that while there is significant excitement surrounding new offerings, caution is warranted given the mixed performance of current IPOs. The Nifty-50, India’s key stock index, has seen unimpressive returns of around 6% this year, while small and mid-cap indices have delivered negative returns.
Concerns have also emerged regarding global economic factors, with foreign investors largely absent from the IPO frenzy. They have reportedly divested over $20 billion from Indian equities this year, putting India in a less favorable light compared to its previous status as a favored investment destination. This trend underscores a reliance on domestic investors, with many entering the market excitedly but perhaps without a full understanding of the underlying financial fundamentals.
As prominent names like Walmart-backed PhonePe and the telecommunications giant Jio prepare to launch their IPOs, the sentiment surrounding India’s IPO market remains high. Yet, analysts caution that the current environment may favor hype over solid financial performance, urging investors to remain discerning in their choices.
The coming months will be crucial as the IPO wave continues, and whether this trend can sustain its momentum amid external pressures and market fluctuations.
