India’s primary market has delivered a strong performance in 2025, emerging as the 4th largest globally in fundraising via initial public offerings (IPOs), as per Bernstein. With $14.2 billion (₹85,241.08 crore) collected so far, the country trails only the US, Hong Kong, and China in total funds mobilised through IPOs this year.
According to Bernstein’s analysis, 74 Indian companies raised ₹85,241.08 crore through IPOs in calendar year 2025, excluding the three large issues, WeWork India, Tata Capital, and LG Electronics India, which aim to collectively raise around ₹30,000 crore. The US led global fundraising at $52.9 billion, followed by Hong Kong with $23.4 billion and China at $16.2 billion. This puts India firmly in the 4th position worldwide.
In the last 5 years, 2025 marks the 3rd highest primary market mop-up, next only to ₹1,59,783.76 crore raised in 2024 and ₹1,18,723.17 crore in 2021.
While foreign institutional investors (FIIs) have withdrawn nearly $18 billion from India’s secondary markets this year, they have simultaneously invested $5 billion in IPOs. This divergence underlines investors’ confidence in new equity issuances despite subdued secondary market performance, where returns in US dollar terms have been nearly flat year-to-date.
Bernstein’s analysis, coauthored by Venugopal Garre and Nikhil Arela, highlighted that investors are clearly distinguishing between the primary and secondary markets, favouring fresh issues for short-term gains.
Read More: Tata Capital IPO Details and How the Previous Tata Group IPO Performed!
A total of 161 IPOs listed since January 2024 have delivered an average 22% listing gain, with over 53% yielding double-digit returns. Around 61% of these IPOs outperformed the Nifty index over the last 6 months, marking consistent outperformance in 5 of the past 7 quarters. However, long-term returns have been mixed, with roughly half of these stocks turning negative after 3 months of listing.
Interestingly, FII outflows have often coincided with periods of heavy IPO activity, suggesting that investors may be rotating capital swiftly after booking profits from primary market gains.
Among the 161 IPOs, 28 or about 16% came from consumer tech, green energy, and digital sectors. The analysis reveals that smaller IPOs have been more successful in terms of listing returns. Offerings below $20 million generated around 40% average returns, compared to 31% for those between $20-40 million, while larger IPOs above $1 billion managed only 9% on average.
India’s IPO market in 2025 has stood resilient, attracting strong domestic and institutional participation despite foreign outflows from secondary markets. The robust activity, backed by consistent listing gains and sectoral diversity, underscores India’s growing depth and investor confidence in its capital markets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 securities are subject to market risks. Read all related documents carefully before investing.
Published on: Oct 9, 2025, 1:10 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
