2025 could prove to be another great year for the Indian IPO market. After the strength gained in 2024, market analysts expect the momentum to accelerate further. This will give investors many opportunities to invest in different sectors.

A total of 96 main board IPOs and 241 SMEs together raised Rs 1.71 lakh crore in 2024. According to data from Prime Database, this year was very special for primary market investors.

Ajay Garg, Director and CEO of SMC Global Securities, says that this is a sign of the growth of India's primary market and the increasing risk-taking ability of investors. He said that SEBI's focus on quality in SME IPOs and new rules will create a strong and reliable environment for investors.

FPI interested in IPO

While foreign portfolio investors (FPIs) withdrew money from the secondary market in 2024, they invested Rs 1.03 lakh crore in the IPO market. Ajay Garg said that FPIs were inclined towards IPOs due to the right price and reasonable valuation. In 2025, Garg expects more IPOs to come in the IPO market from new technology sectors, such as quick commerce, electric vehicles (EV), and auto-tech.

24 companies get SEBI approval, 62 more in queue

So far, 24 companies have received approval from SEBI to launch IPO. At the same time, 62 companies have filed Draft Red Herring Prospectus (DRHP) and are awaiting approval. A total of Rs 1.54 lakh crore is expected to be raised from these companies.

Major companies that have received approval from SEBI include National Securities Depository (NSDL), Ecom Express, SK Finance, Avans Financial Services, and Manjushree Technopark.

At the same time, LG Electronics India, Shivalik Engineering Industries, Dr. Agarwal Health Care, Hexaware Technologies, Continuum Green Energy, Ather Energy, JSW Cement, and HDB Financial Services have filed draft papers.

India's dominance in IPO

Prashant Tapase, Senior Vice President and Research Analyst, Mehta Equities, said that India has overtaken the US and Europe to become the global leader in IPO activity. Tapase believes that due to record subscription demand in 2024, excellent returns on listing and increasing retail investors, there may be a tremendous response to IPO in 2025. According to an NSE report, 35 lakh new retail investors joined in 2024, taking the total number of investors to 10.85 crores by November.

The IPO Market of 2025

Tapase says that in 2025, the IPO market will provide opportunities to investors in different sectors. He said, "The enthusiasm of retail and large investors shows that the Indian market will remain attractive for domestic and foreign investors. This will further strengthen India's economic progress."