Due to a confluence of domestic and international variables, the number of initial public offerings (IPOs) has drastically decreased this year, by as much as 62%. Ten initial public offerings have raised Rs 18,704 crore so far in 2025, whereas 27 public offerings have raised Rs 24,437 crore between January and May of 2024.
Remarkably, the average issue size has more than quadrupled, from Rs 905 crore to Rs 1,870 crore, despite a decline in the number of initial public offerings. Ather Energy (Rs 2,981 crore), Dr. Agarwal’s Health Care (Rs 3,027 crore), and Hexaware Tech (Rs 8,750 crore) are a few of the largest initial public offerings (IPOs) in CY25.
This year’s IPOs have mostly had trouble after listing. Ather Energy, Quality Power, and at least six more are trading below issue prices. Shares of Indo Farm and Stallion India have fallen more than 38% from their initial prices.
Because of this, corporations are postponing issuances even after receiving approvals from the Securities and Exchange Board of India (SEBI), and both retail and institutional investors are becoming hesitant. Their main concerns are geopolitical instability and tariff uncertainty.
The IPO pipeline is still robust despite the delays; around half of the 80 businesses that file draft prospectuses receive permits from SEBI. Construction, real estate, life sciences, hospitality, and industry are the most active sectors.
IPOs listed in 2024 had impressive profits. In contrast to Jyoti CNC Automation, which provided more than 150%, Bharti Hexacon received more than 100%. Big listings like Hyundai Motors, which raised billions of dollars, and Hexaware Technologies, which raised over $1 billion, cemented India’s place as one of the world’s leading IPO markets.
If global economic uncertainty and macroeconomic trends stabilize, the sectoral diversity of the issuance pipeline and the ongoing demand from both local and foreign investors do point to a recovery in IPO markets.
