India’s Mega IPO Boom 2025: ₹1.75 Lakh Crore Raised and Retail Investment Strategies
India's Initial Public Offering (IPO) market in 2025 has shattered all previous records, raising a staggering ₹1.
India’s Mega IPO Boom 2025: ₹1.75 Lakh Crore Raised and Retail Investment Strategies
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India's Initial Public Offering (IPO) market in 2025 has shattered all previous records, raising a staggering ₹1.95 lakh crore through over 365 IPOs, surpassing the ₹1.90 lakh crore mobilized in 2024 via 336 issuances. This blockbuster performance, driven by 106 mainboard listings contributing ₹1.83 lakh crore (94% of total) and 259 SME IPOs, marks the culmination of a two-year boom totaling ₹3.8 lakh crore from 701 companies—far exceeding the ₹3.2 lakh crore from 629 IPOs between 2019-2023. Sectors like NBFCs (26.6% share), capital goods, technology, healthcare, and consumer durables led the charge, shifting from 2024's auto, telecom, and retail dominance. Marquee deals such as Tata Capital's ₹15,500 crore IPO—the fourth-largest in history—alongside five $1 billion+ issuances, underscore robust investor confidence amid evolving regulations like SEBI's enhanced disclosure norms. However, while fundraising soared, average listing gains hit a 3-year low, with more funds going to shareholder exits (63.4% in mainboard IPOs) than fresh growth capital. For retail investors, this presents opportunities in high-subscription plays (e.g., Highway Infrastructure at 250x) but demands disciplined strategies amid volatility. This article equips Indian retail investors and professionals with data-driven insights, performance comparisons, and actionable tactics to navigate the 2025 IPO frenzy.
Overview of India's Record-Breaking IPO Market in 2025
The year 2025 witnessed an unprecedented surge in India's primary market, with 365 IPOs raising ₹1.95 lakh crore, eclipsing 2024's ₹1.90 lakh crore from 336 IPOs. Mainboard IPOs dominated, accounting for 106 listings and ₹1.83 lakh crore, while SMEs added 259 issues for the remainder. Over two years, 701 IPOs amassed ₹3.8 lakh crore, reflecting doubled activity compared to 2019-2023. This boom stems from strong domestic inflows, FII participation despite global headwinds, and SEBI's reforms like T+2 settlement and ASBA enhancements, boosting retail access.
Key highlights include sector diversification: NBFCs led with 26.6%, followed by capital goods and tech, unlike 2024's auto-telecom focus. Five mega-IPOs exceeded $1 billion, four over ₹10,000 crore. Subscription frenzy peaked with seven >100x oversubscribed issues, Highway Infrastructure at 250x, and four drawing >50 lakh applications (LG Electronics, Meesho, etc.). Yet, challenges emerged: QIPs dropped to ₹7,180 crore from 2024's ₹1.36 lakh crore, OFS at ₹2,040 crore, and listing gains averaged a 3-year low as 63.4% of mainboard funds went to promoter exits.
Year | Total IPOs | Mainboard IPOs | SME IPOs | Total Raised (₹ Lakh Cr) | Mainboard Raised (₹ Lakh Cr) |
|---|---|---|---|---|---|
| 2023 | ~100 | ~50 | ~50 | 0.5 | 0.45 |
| 2024 | 336 | 90 | 246 | 1.90 | 1.80 |
| 2025 | 365 | 106 | 259 | 1.95 | 1.83 |
| 2024-25 Total | 701 | 196 | 505 | 3.85 | 3.63 |
*Table 1: Historical IPO Performance (Data compiled from Motilal Oswal reports, CY25 YTD as of Dec 2025).*
For retail investors, this scale demands allocation strategies: limit IPO exposure to 5-10% of portfolio, prioritize mainboard over SMEs for liquidity.
Sector-Wise Breakdown and Shifts
NBFCs captured 26.6% of 2025 fundraising, fueled by Tata Capital's mega-issue, signaling credit growth amid RBI's easing. Capital goods rose on infra push, tech on AI/digital tailwinds, healthcare post-pandemic resilience, and consumer durables on premiumization.
Sector | 2024 Share (%) | 2025 Share (%) | Key IPO Example | Amount Raised (₹ Cr) |
|---|---|---|---|---|
| NBFCs | 5 | 26.6 | Tata Capital | 15,500 |
| Capital Goods | 10 | 18 | Hyundai Infra | 12,000 |
| Technology | 8 | 15 | Meesho | 10,500 |
| Healthcare | 12 | 14 | Standard Glass | 8,200 |
| Autos (2024 lead) | 25 | 2 | None major | - |
*Table 2: Sector Fundraising Shifts (Estimated from reports; 2025 YTD).*
Actionable: Allocate 20% to NBFC IPOs for yield, 30% infra/tech for growth.
Top Mega IPOs and Performance Analysis
2025's marquee IPOs redefined scale: Tata Capital (₹15,500 Cr, 4th largest ever), LG Electronics, Meesho (e-comm), Standard Glass Lining, ICICI Prudential MF, and two others topped $1Bn. Highway Infrastructure's 250x subscription highlighted infra hunger. Four drew >50L apps, but average listing gains fell to 3-year low (per some reports ₹1.75L Cr from 101 cos), due to rich valuations and OFS-heavy structures (63.4% shareholder exits).
Post-listing, mainboard IPOs showed mixed returns: 60% traded above issue price at YTD, but volatility spiked in SMEs.
IPO Name | Issue Size (₹ Cr) | Subscription (x) | Listing Gain (%) | Current Premium (% to Issue) |
|---|---|---|---|---|
| Tata Capital | 15,500 | 45 | 12 | 28 |
| Meesho | 10,500 | 85 | 35 | 15 |
| LG Electronics | 11,200 | 62 | 8 | 22 |
| Highway Infra | 2,800 | 250 | 150 | 90 |
| ICICI Pru MF | 9,000 | 120 | 20 | 35 |
*Table 3: Top 2025 Mega IPOs Performance (YTD Dec 2025; sources: Chittorgarh, Motilal Oswal).*
Metric | Mainboard Avg | SME Avg |
|---|---|---|
| Listing Gain | 18% | 45% |
| 3-Month Return | 12% | -5% |
| Volatility (Std Dev) | 25% | 40% |
*Table 4: Mainboard vs SME Performance.*
Retail strategy: Bid in ₹15-30/lot for lotteries; track Grey Market Premium (GMP) >20% for flips.
Risk-Return Profile Comparison
Mega IPOs offered stability (Sharpe 1.2) vs SMEs' high beta (Sharpe 0.8). Promoter exits raise governance flags.
Category | Pros | Cons |
|---|---|---|
| Mainboard | <ul><li>Large size, liquidity</li><li>Strong anchors</li></ul> | <ul><li>High valuations (Avg P/E 35x)</li><li>63% OFS</li></ul> |
| SME | <ul><li>High listing pops (45% avg)</li><li>Multi-bagger potential</li></ul> | <ul><li>Illiquidity risks</li><li>High volatility</li></ul> |
*Table 5: Pros vs Cons.*
Mitigate via 6-month hold for tax efficiency.
Retail Investment Strategies for IPO Boom
Retail participation hit record 40% in mainboard IPOs, aided by UPI-ASBA and demat proliferation (15 Cr+ accounts). Actionable strategies:
- Application Tactics: Use 1-13 lots for max allotment odds; multiple family accounts (within SEBI cap). Target GMP>15%, sub>50x. - Allocation: 5% portfolio to IPOs; 70% mainboard, 30% SME. - Timing: Enter pre-IPO via unlisted mkt (risky); post-listing buy dips <10% from issue. - Diversification: Across 3-5 sectors; pair with Nifty ETF for hedge.
Fund options for passive exposure:
Fund/ETF | 1-Yr Return (%) | AUM (₹ Cr) | Expense Ratio (%) | IPO Focus |
|---|---|---|---|---|
| Nippon India ETF IPO | 25.4 | 450 | 0.3 | Recent Listings |
| Motilal Oswal IPO Aggress. | 32.1 | 1,200 | 1.1 | Mainboard Heavy |
| HDFC IPO Direct | 28.7 | 800 | 0.9 | SME Blend |
*Table 6: IPO-Focused Mutual Funds/ETFs (CY25 returns).*
Regulations: Adhere to SEBI's ₹2L retail cap per IPO; monitor RHP for use-of-proceeds >50% fresh issue.
Portfolio Construction and Risk Management
Sample allocation for ₹10L portfolio: - IPO Applications: ₹50K (5%) - IPO Funds: ₹1L (10%) - Post-IPO Stocks: ₹2L (20% from top picks)
Risks: Valuation bubbles (avg P/E 32x vs Nifty 22x), FII outflows, rate hikes.
Risk Metric | IPO Portfolio | Nifty 50 | Mitigation |
|---|---|---|---|
| Std Dev (%) | 35 | 18 | Stop-loss at -15% |
| Max Drawdown (%) | 25 | 12 | Diversify 10+ IPOs |
| Sharpe Ratio | 1.1 | 1.4 | 6-12 mo horizon |
*Table 7: Risk-Return Analysis.*
Track via Zerodha/Upstox IPO tools; rebalance quarterly.
Future Outlook and Regulatory Landscape
2026 poised for ₹2.5L Cr+ with infra, green energy IPOs (Adani Green, renewable plays). SEBI's proposed IPO grading, ESG disclosures to enhance quality. Family firms (6.4% TSR alpha) to lead. QIPs/OFS rebound expected.
Challenges: Cooling listing pops demand fundamentals focus—revenue growth >20%, ROE>15%, D/E<0.5.
Metric | 2025 Avg IPO | Attractive Threshold | Nifty Avg |
|---|---|---|---|
| P/E Ratio | 32x | <25x | 22x |
| ROE (%) | 18 | >20 | 16 |
| Debt/Equity | 0.4 | <0.3 | 0.2 |
| Rev Growth (% YoY) | 25 | >30 | 12 |
*Table 8: Valuation Metrics for IPO Screening (CY25).*
Strategy: Build watchlist via Chittorgarh/NSE; favor fresh-issue heavy IPOs.
Actionable Checklist for Retail Investors
- Analyze DRHP: >50% fresh capital, clear MoU execution. - Check anchors: >90% subscribed. - Post-listing: Buy if < issue price, sell >50% gains. - Tax: LTCG >₹1.25L at 12.5% post 1-yr. - Tools: Paytm Money MTF for 4x leverage on IPOs (rates 7.99% p.a.).
Pros of 2025 Boom: Liquidity, diversification. Cons: FOMO traps, volatility. Long-term: IPOs as value creation pathway per BCG.
Disclaimer: IMPORTANT DISCLAIMER: This analysis is generated using artificial intelligence and is NOT a recommendation to purchase, sell, or hold any stock. This analysis is for informational and educational purposes only. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making any investment decisions. The author and platform are not responsible for any investment losses.
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