The Indian IPO market is gearing up for a record-breaking year in 2025, with projections suggesting fundraising could surpass Rs 2 lakh crore. This follows a landmark year in 2024, where over 90 companies collectively raised a staggering Rs 1.62 lakh crore, more than double the Rs 49,436 crore raised in 2023.
Market watchers note that at least 100 companies have already filed draft offer letters with the Securities and Exchange Board of India (SEBI), with many receiving approval or awaiting clearance. Analysts from Pantomath Capital Advisors highlight the strong market momentum and investor confidence in the upcoming IPOs, setting a promising tone for the year.
India’s macroeconomic position remains solid, with robust growth, a favorable balance of payment outlook, and manageable fiscal and inflation conditions. Shripal Shah, MD and CEO of Kotak Securities, emphasizes India’s status as one of the world’s fastest-growing major economies, making it an attractive investment destination for global investors.
Shah predicts that the equity market will gain more momentum in 2025, with commodities potentially crossing historic highs. He also notes an increase in young investors entering the stock market to build wealth early on, contributing to overall market growth. While domestic fundamentals remain robust, cautious optimism is advised, with long-term investors encouraged to focus on quality assets amid rich valuations.
Global economies are stabilizing as monetary policies shift toward easing, with anticipated interest rate cuts in the US, Europe, and Asia, according to Kotak Securities.
