India’s Initial Public Offering (IPO) market arguably stands as one of the most dynamic in the world, fueled by a confluence of factors, including an emerging startup ecosystem, supportive government policies, and increasing investor confidence in the Indian economy.
This surge in IPOs is not merely something we are making up; it’s happening in real time. Every other day, companies like Mistral are setting their sights on going public, further fueling the momentum.
As the Indus Valley Annual Report 2025 aptly states, India’s IPO market is “booming”. This surge is not just about major corporations going public; it’s also about the rise of Small and Medium Enterprise (SME) IPOs, which are democratising access to capital for smaller businesses and fueling their growth.
Swiggy, a food delivery company that leverages AI-powered neural search to improve customer experience, went for IPO in 2024. More companies like Mobikwik and Hyundai Motor India also went for the IPO last year.
A Deep Dive into India’s IPO Boom
The report offers a comprehensive analysis of India’s IPO market, highlighting its key trends, opportunities, and challenges. It highlights a consistent rise in the number of IPOs in India over recent years, with a significant jump in 2024 and 2025. This growth can be attributed to a variety of factors, most notably the influx of startups raising significant money to scale their operations and expand their presence.
To emphasise the scale of the boom, the report highlighted the largest IPO in India’s history. “Hyundai Motor India was the largest-ever IPO in India, raising ₹27,870 crore (approximately $3 billion). It was also the second-largest IPO globally in 2024.”
“India led in IPO activity globally, with a 23% share of total listings,” the report further stated.
Looking at such impressive numbers, this might be the best time for Indian IPOs.
Krishnan VR, a quantitative research specialist at Marcellus Investment Managers, previously told AIM that this may be an opportune moment for an IPO, provided the companies possess a robust business model capable of consistently generating cash flows or convincingly outlining a route to profitability through growth.
He also mentioned that he does not see much impact of the Indian rupee depreciation on the investor IPO demand as long as domestic mutual fund flows.
Another report by the Pantomath Group forecasts that equity raised through IPO will cross ₹2 lakh crore in 2025.
“Multinational corporations have demonstrated the strategic advantages of listing in India. Factors such as reduced capital costs, wide consumer market, robust regulatory regime, encourage global players to consider Indian markets for their equity offerings,” Mahavir Lunawat, founder of Pantomath Financial Services Group, a mid-market focused investment bank, said.
The Rise of SME IPOs
One of the most striking features of India’s IPO boom is the rise of SME IPOs. These listings have emerged as a significant contributor to the overall IPO activity, providing a crucial platform for smaller businesses to access capital and grow.
The Indus Valley Annual Report 2025 highlights the significant growth in SME IPOs, which offer several advantages like access to capital, enhanced visibility and credibility.
“Of the 268 IPOs on NSE in India, 90 of them were Mainboard listing vs 178 SME (NSE Emerge) IPOs,” the report added.
Furthermore, it was mentioned that the number of issues has grown from 68 in 2016 to 236, including both BSE SME and NSE Emerge in 2024.
What Does The Future Hold?
Even with promising IPO activity, startups should consider making their revenue model right before going public.
Akash Aggarwal, managing director of investment banking at Motilal Oswal Financial Services, said, “In my view, not every startup is ready for an IPO because most investors are looking for companies that are not burning cash for revenue. This makes these companies not ready for the public market.”
We see companies like PhonePe and Zepto gearing for an IPO listing in 2025. Similarly, up-and-coming startups are waiting for approval for IPO listings, and it should only get more exciting in 2025.
