India Ranks High in IPO Volume Though Trails in Fundraising

India’s IPO Market, among the world’s busiest, though proceeds trail the U.S. and China, India’s initial public offering (IPO) market remains one of the most active globally by transaction count, but continues to lag behind the U.S. and China in terms of capital raised during the first half of 2025.

A recent EY Global IPO Trends report reveals India recorded 108 IPOs between January and June, collectively raising $ 4.6 billion, despite a 30% decline in issue volume compared to the previous year. This reflects a maturing market where investors are placing greater emphasis on deal quality over sheer quantity.

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Global Context

In Q1 2025 alone, India accounted for roughly 22% of all global IPOs, listing 62 companies that raised $ 2.8 billion. While the total number of deals was high, the proceeds were modest by global standards, with the U.S. and China still capturing the top positions in.

Despite raising less money, India's 108 IPOs in H1 2025 generated 8.9 % of global proceeds, with $ 61.4 billion raised worldwide by 539 IPOs—underscoring India's punch amid global weakness.

Sector Trends & Market Dynamics

The industrial and mobility sectors led the charge, with India, South Korea, and China hosting strong activity in these areas. Within India, industrial IPOs alone accounted for $ 1.7 billion raised across 38 offerings in the first half.

EY notes that future momentum could depend on global trade recovery, easing interest rates, and reduced geopolitical tensions.

Shifting Priorities in a Maturing Market

Even as volume declined, the proceeds fell only marginally—down about 2% from the previous year’s first half. This suggests a drop in low-value listings but continued strength in larger, well-rated offerings. EY highlights a growing focus on high-quality, profitable issuers, indicating that India’s IPO market is becoming more disciplined.

Despite fewer issuers, companies are choosing more strategic timing and better valuations, while India secured 10 % of global IPO capital in Q1, ranking fourth in global proceeds.

Outlook for the Year

India is positioned to end 2025 as the world’s most prolific IPO market outside the U.S. Through June, India has already raised $ 6.7 billion, up from $ 5.4 billion in the same period last year.

The strong pipeline includes upcoming public offers from major firms like Tata Capital. The post-pandemic interest rate cuts and a recovering Nifty index are creating favourable conditions.

While macro uncertainties linger—such as trade disputes and inflation—analysts expect a robust second half for India’s IPO market, particularly in tech, healthcare, and industrial sectors.

Conclusion

India’s IPO market is evolving from a volume-driven model to one emphasising quality and scale. Despite a decline in the number of issues, total proceeds held steady. With a strong pipeline, improved investor sentiment, and conditions from macroeconomic recovery, the second half of 2025 may prove to be another record year for listings in India.