MUMBAI - Indian companies of all stripes - from insurers to jewelers and e-commerce platforms - rushed to sell shares to the public in 2025, making it a record year for listings. Foreign and domestic investors alike piled in, with bankers working overtime to get deals across the line.
It wasn't just the number of initial public offerings (IPOs) that was remarkable, but the sheer volume of capital involved: US$22 billion (S$28 billion), the highest annual total ever. Bankers say another record year in 2026 is not off the table.
The IPO boom comes despite a relatively gloomy year for India's stock exchanges, where trading activity has lagged other emerging markets.
Foreign investors offloaded Indian stocks after US President Donald Trump imposed swingeing import tariffs on the country's goods to address what he saw as an unbalanced trade relationship. That wasn't enough to stop Indian companies pressing ahead with a flurry of listings, many of which had been in the works for some time. More than 200 either received approval to list from India's securities regulator or lodged prospectuses for IPOs this year - the highest tally in 27 years, according to capital-markets data provider Prime Database.
In September alone, 25 companies debuted on India's main listing boards, the most in a single month since 1997. Among them was household-services platform Urban Company, whose US$216 million IPO drew bids for more than 100 times the number of shares on offer. At least 38 companies went public in the final three months of 2025.
Among the biggest listings of the year were the US$1.7 billion debut of Tata Capital - the financial-services arm of India's largest conglomerate Tata Group - and the US$1.3 billion IPO of the Indian unit of South Korea's LG Electronics.
IPOs raised nearly US$43 billion over the two years through December 2025, while the value of block trades and placements - where stock is sold directly to select wealthy investors and financial institutions - surpassed US $100 billion.
More large offerings are on the horizon. Among heavyweights preparing to list are wireless carrier Jio Platforms, Walmart-backed e-commerce firm Flipkart India and even the National Stock Exchange of India itself. Multinationals have also joined the queue, including Coca-Cola's Indian bottling unit.
A buoyant stock market offers an opportunity to raise capital at a low cost. Retail investors have been pouring money into stocks and pushed them to record highs, so companies have a good chance to achieve a strong valuation in an IPO. Several recent billion-dollar-plus listings have performed strongly, encouraging large businesses to weigh going public.
Indian company founders increasingly view public markets as the most effective way to sell down holdings and build their wealth. Many had held back previously over fears of weak market liquidity and disappointing valuations. Each successful listing has in turn encouraged more issuers to fast-track their IPO plans.
Two camps have dominated the surge: slower-growing, traditional businesses such as infrastructure builders and newer, rapidly expanding companies, some of them backed by global investors seeking exposure to the world's most populous nation.
Financial services have led this year's IPO flurry, anchored by billion-dollar offerings such as Tata Capital and shadow lender HDB Financial Services. That was followed by consumer services, capital goods and automotive companies. Those four sectors accounted for almost half of the funds raised in new listings in 2025.
Multinational companies are also lining up to list their Indian subsidiaries. Global advisory firm Rothschild & Co. expects at least 10 foreign companies to float their Indian units in Mumbai in the coming year, drawn by higher valuations and the country's rapid economic growth.
Foreign investors have pulled back from India's IPO market in recent years, but domestic buyers have stepped in to fill the gap. They now account for about 75 per cent of IPO investment, up from roughly 57 per cent in 2021. Indian bankers say the structural shift is creating a more self-sustaining and consistent market, one that's less reliant on more volatile flows of global capital.
Indian mutual funds and insurers have driven much of the demand for new share sales. Recurring investments by mutual funds have brought in about US$3 billion each month on average, while insurance companies, pension funds, alternative investment vehicles and family offices contributed another US$1 billion to US$2 billion. Together, India is generating on average US$5 billion in fresh domestic capital for equities every month.
Individual investors have emerged as another driving force. They are allotted 35 per cent of shares in IPOs and, except for a few issues, their portions have been consistently fully subscribed. Many individual investors who once preferred real estate, gold or fixed deposits have turned to the stock market in search of better returns since the Covid lockdowns of 2020.
Cash trading turnover - the total value of shares bought and sold on exchanges - has declined sharply, averaging about US$12 billion per day in 2025, down from roughly US$15 billion in 2024.
This has a lot to do with weaker corporate earnings growth undermining valuations. IPOs have offered investors access to newer segments of the economy, and a chance to back newer businesses that have disrupted established players.
Foreign investors in particular have reduced holdings of Indian equities as President Donald Trump tariffs and broad trade tensions with the US cloud the profit outlook for many local companies. Foreign ownership of companies listed on the National Stock Exchange, the country's biggest bourse, has slipped to less than 17 per cent, the lowest in 15 years.
Global funds are still interested in Indian IPOs, however, especially tech-driven start-ups. Recent successes include e-commerce platform Meesho, Billionbrains Garage Ventures, the parent of India's top discount broker Groww, and Urban Co. To be sure, in recent years some much-touted offerings, such as Indian financial technology firm Paytm, have struggled after their listing.
Indian equities are nevertheless on track for a 10th straight annual gain - a streak surpassed only by the Japanese Nikkei's 12-year rally about four decades ago. But momentum has cooled, and the stock market is trailing most key global peers in total returns.
The real test is whether all those newly listed companies can sustain their performance under the increased scrutiny that comes with a public listing.
Corporate earnings growth in India is set to be in the single-digit percentage range in 2025, and more than half of this year's roughly 358 listings on the country's main and junior boards are already trading below their offer prices, according to data compiled by Bloomberg. Companies that raised less than US$100 million account for most of the laggards, though a few bigger names such as Tata Capital and HDB Financial Services, which raised at least US$1.5 billion each, were barely trading above their IPO prices.
While companies listed in India are enjoying strong valuations, this increases the risk that their earnings will disappoint, prompting investors to dump the shares. That could make them more selective with future IPOs, favouring companies with strong cashflow, proven business models and reasonable pricing. Scooter-maker Ola Electric Mobility serves as a cautionary tale: Its much-hyped listing in 2024 was followed by a steep sell-off amid mounting losses and product flaws.
International politics remain the biggest wildcard. Indian stocks were first among major global markets to recoup losses sparked by Mr Trump's April reciprocal tariffs. However, Indian stocks now face an uncertain outlook as the government struggles to reach a trade deal with the US. BLOOMBERG