A new record was created in the Indian IPO market in 2025. Companies added Rs 1.77 lakh crore. Shares of domestic investors have increased and foreign investors are active. However, half of the newly listed companies are trading below the issue price.

IPO Update: This year, IPOs have created a huge stir in the Indian stock market. Companies are expected to raise Rs 1.77 lakh crore through initial public share issues. According to the information released by Bloomberg, this data has reached its peak after the amount of Rs 1.73 lakh crore added last year. The record-breaking capital raising makes it clear that Indian investors have increased confidence in the IPO market more than ever and companies are taking advantage of this opportunity to raise capital.

Increasing stake to domestic investors

The number of small domestic investors in the country is continuously increasing, which is making it easier for companies to raise funds in the market. In India, due to the rapid growth of Demat Accounts and ease of digital investment platforms, increasing the interest of common people in IPOs, companies are also taking advantage of this opportunity to raise capital. That is why many companies are planning to list in the market before the global situation becomes tough so that they can raise enough money for their expansion.

Increasing interest from foreign investors

Although foreign institutional investors (FIIs) have been selling in the general market, their interest in IPOs still remains strong. The reason for this is India’s stable economic policy and good development prospects. Foreign investors believe that the Indian market has the potential to provide better returns in the long run, hence they do not shy away from setting up new IPOs. This trend reflects India’s economic stability and the confidence of global investors.

The newly listed companies are performing as per expectations.

According to a Bloomberg report, out of more than 300 companies listed in the Indian market this year, almost half of the companies are trading below their issue price. This means that investors get initial profit i.e. listing gain.

This situation also makes it clear that every IPO does not perform well and investors should not invest only by taking subscription. There is also a warning for new investors that before investing in an IPO, they must understand the company’s fundamentals, profitability, risk factors and valuation.

IPO is out, need to choose right one

IPO’s record-breaking capital raising confirms that the investment environment in India is very strong. Companies are moving towards rapid expansion and digital transformation, which requires large investments. Investors should be cautious amid such sharp outflows, as many companies in the market are selling shares at overvalued prices. Therefore, the coming of IPO means that every issue will get good returns.