India's Initial Public Offering market reached a historic milestone in 2025, surpassing 100 listings for the first time in 18 years. This surge has helped companies raise a record ₹1.6 trillion (approximately $19.6 billion) so far this year. However, investors are finding it harder to secure quick profits, with average listing-day gains falling sharply, signaling an end to the "easy money" period. ^[1][2][3]### A Record-Breaking Century The Indian IPO market roared past the century mark in 2025, a feat not seen since 2007. This achievement highlights the dramatic transformation and maturation of the country's capital markets. Companies like Meesho and ICICI Prudential AMC contributed to pushing the year's total beyond 100 listings. T^[1]he funds raised in 2025 have already eclipsed previous records, cementing India's position as a global fundraising powerhouse. B^[1]y December 8, 2025, IPO fundraising had reached an all-time high of ₹1.77 trillion ($19.6 billion), breaking the previous record of ₹1.73 trillion achieved in 2024. Exper^[2][3]ts anticipate the year could close with over $23 billion in issuances. In 2^[4][5]024, the market also saw significant activity, with various reports indicating between 268 to 327 IPOs. These^[6][7][8] offerings collectively raised an unprecedented ₹1.8 trillion, or about $21 billion, in 2024. This ro^[6][9]bust activity was driven by a swelling base of retail investors and steady institutional demand. ### Th^[2]e End of Quick Profits Despite the record fundraising, the days of guaranteed high listing-day gains are largely over for investors. Average listing-day returns in 2025 have fallen to 9.4%, the lowest since 2018. This is^[1] a stark contrast to the over 30% average returns seen from 91 IPOs in 2024 and around 29% from 57 offerings in 2023. Market^[1] data reveals that nearly 50% of the newly listed firms in 2025 are now trading below their offer price. Further^[2][3]more, about 40% of all IPOs listed between 2021 and 2025 are currently trading below their initial issue price. In 2025^[10] alone, 12 IPOs listed below their issue price, and 31 offered gains of only 0-10%, far from the "jackpot" many investors hoped for. Pranav^[10] Haldea, Managing Director of PRIME Database, cautioned investors to remain vigilant. He stated, "As far as valuations are concerned, beauty lies in the eyes of the beholder. Even if an issue gets subscribed by a single time, it shows that there was enough demand for the issue at that price. As with any investment, the principle of caveat emptor or buyers beware is applicable here too." ### Fa^[1]ctors Driving the IPO Boom Several key factors are fueling India's sustained IPO momentum. A significant driver is the deepening of the domestic investor base. Local investors, including mutual funds and insurance firms, have poured over $70 billion into the market. Domesti^[11]c investments accounted for almost 75% of initial share sales in 2025, marking the highest proportion for any year with proceeds exceeding ₹1 trillion. This redu^[11]ces the market's reliance on foreign funds, creating a more self-sustaining IPO ecosystem. The qual^[11]ity of companies going public has also improved. Pranav Haldea noted, "The companies which are getting listed are now far more matured than earlier when we used to have fly-by-night operators or companies very early in their life cycle, without proven business models, getting listed." Many new-^[1]age tech companies, along with healthcare and consumer firms, are now approaching the market after achieving or demonstrating a clear path to profitability. India's ^[12]robust economic growth and a stable policy environment further contribute to this favorable market. The gover^[13][2][14]nment's focus on infrastructure and core sector development, combined with increased private capital expenditure, has enhanced market dynamism. ### The ^[15]New Normal and Investor Vigilance The significant supply of new listings means investors must be more selective. Ashish Gupta, Chief Investment Officer at Axis Mutual Fund, explained, "With such heavy supply, you can't expect a runaway market." The marke^[16]t has become more discerning, and investors are now approaching opportunities with greater thought and circumspection. Abhinav ^[16]Bharti, head of equity capital markets at JP Morgan, believes that annual IPO issuances of around $20 billion are becoming a "new normal" for India. "Yearly issuance of $20 billion is the new normal for India. It is the new watermark and will become an annualised run rate from here on," Bharti said. He also h^[12][5]ighlighted that nearly 20% of current IPO demand comes from consumer technology and new-age businesses, a share expected to exceed 30% over the next five years. A growin^[12][4][5]g trend is the rise of Offer for Sale (OFS) transactions, where existing shareholders, including promoters and early investors, sell their shares. In 2025, over ₹96,000 crore has already been raised through OFS, potentially making it the first year to cross ₹1 trillion in OFS volumes. This means a ^[10]substantial portion of the funds raised does not directly go into the company for growth or expansion. ### Looking ^[10]Ahead The pipeline for future IPOs remains robust, with several large issues expected in 2026. Experts antic^[1][16]ipate that India's overall market capitalization could double to $10 trillion over the next five years, making it the world's third-largest market after the US and China. JP Morgan exp^[4][5]ects foreign portfolio flows to return to Indian markets next year, citing improved valuations. India is inc^[5]reasingly seen as a safe investment destination globally, especially as developed markets are influenced by AI-led momentum. This strong o^[4]utlook, combined with continued domestic liquidity and maturing companies, suggests that while easy listing-day gains may be a thing of the past, India's primary market will remain a dynamic and significant global fundraising hub.

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