Indian companies raise record ₹1.95 trillion through over 365 IPOs in 2025: Motilal Oswal Report

By Admin

26 Dec, 2025

Introduction
India’s primary equity market reached a historic milestone in 2025 as companies raised a record ₹1.95 trillion through more than 365 initial public offerings (IPOs). According to the latest strategy report by Motilal Oswal Financial Services, this marks the strongest year ever for IPO fundraising in the country, reflecting strong investor confidence, diversified sector participation, and sustained capital market momentum.

A record-breaking year for IPO fundraising
The performance in 2025 builds on the already robust activity seen in 2024, when companies raised ₹1.90 trillion through 336 IPOs. Together, the last two years have witnessed ₹3.8 trillion mobilised via 701 IPOs, significantly exceeding the ₹3.2 trillion raised over the entire five-year period between 2019 and 2023. This sharp acceleration highlights the growing depth and maturity of India’s capital markets.

Mainboard IPOs dominate capital formation
Mainboard listings continued to be the primary drivers of fundraising in 2025, accounting for nearly 94 percent of the total capital raised. Out of the 365 IPOs launched during the year, 106 were mainboard issues that collectively raised ₹1.83 trillion. In contrast, the remaining 259 SME IPOs contributed a relatively smaller share of overall funds, despite their higher numbers. Over the past two years alone, just 198 mainboard companies have raised ₹3.6 trillion, underlining their outsized role in India’s capital formation story.

Landmark listings and major highlights
One of the most notable events of the year was Tata Capital’s IPO in October 2025, which raised ₹155 billion. This offering stands as the fourth-largest IPO in India’s history, further cementing 2025 as a landmark year for the primary market.

Shifting sectoral participation
The Motilal Oswal report points to a clear diversification in sector participation compared to previous years. In 2025, non-banking financial companies (NBFCs) led the fundraising activity with a 26.6 percent share. Other significant contributors included capital goods, technology, healthcare, and consumer durables. This represented a shift from 2024, which was dominated by automobiles, telecom, and retail sectors. Interestingly, sectors such as utilities and private banking, which played a major role in 2024, saw no IPO fundraising in 2025.

Strong investor demand and post-listing performance
Investor appetite remained exceptionally strong, with IPOs oversubscribed by an average of 26.6 times over the past two years. SME IPOs, in particular, witnessed intense demand, with subscription levels crossing 100 times in several cases. Post-listing performance has also been encouraging, as around 55 percent of mainboard IPOs listed in the last two years are currently trading above their offer prices, indicating sustained investor confidence beyond the listing day.

QIPs and OFS activity in 2025
While IPO activity surged, fundraising through qualified institutional placements (QIPs) moderated in 2025. Companies raised ₹718 billion through QIPs so far, significantly lower than the record ₹1.36 trillion raised in 2024. State Bank of India alone accounted for approximately 35 percent of the total QIP fundraising this year. Offers for sale (OFS) also remained subdued at ₹204 billion, largely driven by stake sales from private promoters rather than large-scale disinvestment.

Outlook for the IPO market
Motilal Oswal expects the IPO momentum to remain strong in the coming years. Continued domestic institutional inflows, steady retail participation through mutual fund SIPs, and a healthy pipeline of companies are likely to support future listings. Emerging themes such as renewable energy, quick commerce, and app-based business models are expected to shape the next wave of IPOs, further strengthening India’s position as one of the world’s most dynamic and vibrant equity markets.

Conclusion
The record ₹1.95 trillion raised through IPOs in 2025 underscores the resilience and growing global appeal of India’s equity markets. With strong investor demand, diversified sector participation, and supportive domestic flows, the Indian IPO landscape appears well-positioned to sustain its growth trajectory in the years ahead.