India clocked 108 IPOs in the first half of 2025, signaling strong market participation, but total proceeds remained modest compared to global peers.
India’s primary market remained one of the most active globally in terms of number of IPO listings during the first half of 2025, but it lagged behind the US and China in terms of funds raised, according to the latest EY Global IPO Trends Report. The data points to a shifting trend toward quality over quantity, as macro headwinds, regulatory scrutiny, and cautious investor sentiment shape the global fundraising landscape.
India IPO Volume Dips, But Proceeds Hold Steady
India saw 108 IPOs between January and June 2025, raising $4.6 billion — representing just 8% of global IPO proceeds. While the number of listings marked a 30% YoY decline, the capital raised fell by only 2%, suggesting that average deal sizes have grown or remained steady, despite the volume slowdown.
In contrast, the US and China dominated the IPO landscape, accounting for 28% and 34% of global proceeds respectively. The US logged 109 IPOs, the highest first-half count since the 2021 boom, while China saw both volume and value surge on the back of large offerings and increased institutional interest.
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Market Sentiment Turning, But Risks Linger
According to EY, the dip in activity reflects a more strategic, fundamentals-first approach from issuers and investors alike. Many companies have delayed launches or reworked valuation expectations in light of geopolitical tensions, rate uncertainty, and choppy global macro conditions.
That said, signs of a recovery in sentiment are emerging. Retail investor interest in IPOs has stayed strong, and India’s regulatory environment continues to be seen as supportive. The average IPO valuation multiple in India remains elevated at 27x, comparable to US levels — a sign of investor confidence, but also a challenge for issuers to justify steep pricing.
“High-quality issues continue to find takers. There’s no dearth of demand, but the bar has clearly moved higher,” said a senior analyst tracking capital markets.
Outlook for H2 2025: Tech, Healthcare, Fintech in Pipeline
EY expects a pick-up in activity in H2 2025, especially from sectors like technology, fintech, and healthcare, where multiple issuers have already secured SEBI clearance and are awaiting more favourable conditions.
Two distinct scenarios lie ahead:
A broader recovery could emerge if trade dynamics improve, rate cycles ease, and geopolitical tensions cool
On the flip side, persistent macro stress, sticky inflation, or rate volatility could keep markets in a wait-and-watch mode
For now, India’s IPO market appears to be maturing, with investor preference tilting toward fewer but fundamentally stronger listings. Whether this balance shifts will depend largely on global liquidity, domestic earnings stability, and policy clarity in the coming quarters.
