MUMBAI— The world's fourth-largest economy has officially marked its most successful year on the primary market. In 2025, Indian companies raised a staggering $22.9 billion (approximately ₹1.75 lakh crore) through Initial Public Offerings (IPOs), shattering the previous record of $21 billion set in 2024. This surge was fueled by an unprecedented wave of domestic liquidity, as individual households increasingly redirected their savings from traditional assets into the stock market.
The year was characterized by a diverse range of listings across all sectors. Tata Capital claimed the title of the year's largest IPO, raising $1.8 billion (₹15,512 crore) in October. It was closely followed by the Korean giant’s local subsidiary, LG Electronics India, which mobilized $1.3 billion (₹11,605 crore) and delivered a remarkable 48% listing-day gain. Other major debuts included HDB Financial Services ($1.5 billion) and the IT services firm Hexaware Technologies ($1.0 billion).
The "Retail Hero" and Mutual Fund Inflows What distinguishes the 2025 boom is the "democratization" of the Indian market. While Foreign Portfolio Investors (FPIs) withdrew nearly $17.6 billion from the secondary market due to global volatility, domestic retail investors acted as the market's "shock absorber.
- Direct Participation: Individual investors poured a record $5 billion (₹42,000 crore) directly into mainboard IPOs.
- Mutual Fund Power: Monthly contributions through Systematic Investment Plans (SIPs) surpassed $3.5 billion (₹30,000 crore) for the first time in late 2025.
- Asset Growth: The total Assets Under Management (AUM) for the Indian mutual fund industry surged to $960 billion (₹81 trillion) by November, a nearly 20% year-on-year increase.
"We are witnessing a structural shift where domestic capital is now the primary driver of our financial markets," says Vivek Toshniwal, CEO of Plutus Wealth Management. With over 60% of 2025's IPOs trading above their listing price, the "virtuous cycle" of investor confidence and capital mobilization is expected to carry significant momentum into 2026.
Frequently Asked Questions (FAQs)
Why did India see record IPOs in 2025 despite global volatility? India's IPO market was shielded by strong domestic liquidity. As foreign investors pulled back, Indian retail investors and mutual funds—supported by steady SIP inflows—provided the necessary capital to absorb large-scale public offerings.
What were the best-performing IPOs of 2025? LG Electronics India was one of the top performers, seeing its share price jump nearly 50% on its first day of trading. Tata Capital and HDB Financial Services also saw strong demand, though their listing-day gains were more modest (around 1–2%) as investors viewed them as stable, long-term plays.
What is a "SIP" and how did it help the IPO market? A Systematic Investment Plan (SIP) allows individuals to invest a fixed amount in a mutual fund regularly (monthly). In 2025, these steady inflows reached record levels, giving mutual funds a massive pool of capital to invest in new company listings (IPOs), ensuring high subscription rates even for billion-dollar deals.
Are Indian IPO valuations currently too high? While many companies listed at high Price-to-Earnings (P/E) ratios, analysts note that over 60% of 2025 listings have remained profitable for investors. However, some sectors like Consumer Tech have seen valuation cooling as investors shift focus toward "profitable growth" over mere scale.
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