IPO Activity Drops Nearly 63% in 2025: Hexaware, Dr Agarwal’s & Ather Dominate Big-Ticket Listings

India’s primary market has seen a marked slowdown in 2025, with the number of initial public offerings (IPO) falling from 27 in the first five months of 2024 to just 10 during the same period in 2025. This represents a sharp decline of approximately 62.96%, or nearly 63%, as investors and companies react to both global and domestic uncertainties.

Total Capital Raised Declines at a Slower Pace

Although the number of IPOs has dropped significantly, the total capital raised has not seen a proportionate fall. Between January and May 2025, ₹18,704 crore was mobilised through IPOs, compared to ₹24,437 crore in the same period of 2024. This indicates that while there are fewer IPOs, the individual offerings tend to be larger in size.

Average IPO Size More Than Doubles

A notable trend in 2025 has been the significant increase in the average IPO size, which has more than doubled from ₹905 crore in 2024 to ₹1,870 crore this year. Major contributions to this figure came from high-profile listings such as Hexaware Technologies (₹8,750 crore), Dr Agarwal’s Health Care (₹3,027 crore), and Ather Energy (₹2,981 crore), which have skewed the average higher despite the lower count.

Read More: BMW Ventures Re-files IPO Papers with SEBI to Raise Funds.

Weak Post-Listing Performance Raises Concerns

Despite the strong fundraising by some large IPOs, market performance post-listing has been disappointing for many. At least 6 of the 10 IPOs were seen trading below their issue price. This has led to increased caution among retail and institutional investors, affecting market confidence and participation in upcoming public issues.

Geopolitical and Trade-Related Risks Dampen Sentiment

Investor sentiment has been negatively impacted by a combination of geopolitical developments and trade-related anxieties. Earlier in the year, tensions between India and Pakistan contributed to market volatility, although these have recently eased following a ceasefire announcement. However, ongoing concerns over potential tariff changes under US President Donald Trump’s administration have kept global investors on edge.

SEBI-Approved Offerings Postponed Amid Market Volatility

Several companies that have already secured approvals from the Securities and Exchange Board of India (SEBI) are deferring their IPO plans. These delays reflect a cautious approach, as issuers prefer to wait for more favourable market conditions and clearer global signals before proceeding with their listings.

IPO Pipeline Remains Active Despite Delays

Notwithstanding the current slowdown, the IPO pipeline continues to be strong. Around 80 companies have filed their draft red herring prospectuses, with nearly half already receiving SEBI clearance. 

Sectors such as industrials, real estate, life sciences, hospitality, and construction are showing heightened activity and could lead to the next phase of IPO mobilisation when sentiment improves.

Conclusion

The nearly 63% decline in IPO volume in 2025 underscores the prevailing caution in capital markets. However, the increased average issue size and strong pipeline suggest that investor interest may return once stability is restored. The outlook remains dependent on how domestic and international macroeconomic factors evolve in the months ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.