IPO Mania 2025: Why India Is the World's Hottest Listing Destination

India's IPO market has reached unprecedented heights in 2025, establishing the country as the world's hottest listing destination. With 80 mainboard IPOs raising INR 1,630 billion in FY25, and NSE topping global exchanges for funds raised, India has secured a remarkable 22% share of global IPO activity in Q1 2025, raising US$ 2.8 billion.

The Domestic Investor Revolution

One of the most significant shifts in India's IPO landscape is the transformation of investor participation. Domestic investors now provide three-quarters of IPO capital, a dramatic increase from just one-quarter three years ago. This shift reflects the growing sophistication and financial capacity of Indian retail and institutional investors.

• Domestic investors: 75% of IPO capital (up from 25% three years ago)
• Retail participation: Record demat account growth driving subscriptions
• Mutual fund participation: Strong SIP flows supporting IPO investments
• Institutional backing: DIIs actively participating in anchor rounds

Multinational Companies Unlocking Valuations

A notable trend in 2025 is multinational companies listing their India units to unlock valuations. These listings allow global corporations to monetize their Indian operations while providing Indian investors access to well-established businesses with strong growth potential. This trend is expected to continue as India's economy expands.

Listing Gains: A Reality Check

While IPO activity has surged, 2025 IPOs witnessed lackluster listing gains compared to previous years. This normalization reflects a maturing market where investors are more discerning and valuations are more realistic. The era of guaranteed listing pops appears to be giving way to a more sustainable, fundamentals-driven approach.

1. Average listing gains lower than previous years
2. Investors focusing on long-term value rather than quick gains
3. Valuations becoming more realistic and sustainable
4. Quality companies still commanding premium valuations

What's Driving the IPO Boom?

Several factors are fueling India's IPO boom: strong economic growth, favorable regulatory environment, abundant liquidity from domestic investors, and increasing global interest in Indian markets. Additionally, companies are leveraging IPOs to fund expansion, reduce debt, and provide exit opportunities for early investors.

The IPO mania of 2025 represents a fundamental shift in India's capital markets. With domestic investors taking center stage and the country emerging as a global listing destination, India's equity markets are maturing into a world-class platform for capital formation and wealth creation.