According to the market regulator’s bulletin on Friday, fundraising through initial public offerings (IPOs) in India was comparatively mild in December as compared to the peak levels in 2025, but the number of new issuances was the greatest, and the issuance size was the third biggest globally. The Indian equity market’s poor performance due to US tariff concerns, ongoing foreign exodus, and comparatively high valuations also contributed to the moderation.
A report from the Securities and Exchange Board of India bulletin, more than ₹25,500 crore was obtained through 51 Indian initial public offerings (IPOs) in December. The leading issuer was the United States ($900 crore from 11 IPOs), followed by China ($520 crore from 31 IPOs).
According to the report, this shows that market access and issuance capacity expanded despite the unstable external environment. In December, financial services raised over ₹10,600 crore, accounting for over 40% of the IPO size. Consumer services came in second with 23%, followed by healthcare with 12%.
Additionally, it stated that while new offerings led the small and medium category, Offer for Sale (OFS) dominated mainboard IPOs. OFS-led IPOs decreased to 55% in 2025 from a peak of 87% in 2020, according to a statement made by the Sebi Chairperson two weeks ago.
Added to that, issuances decreased to more than ₹74,000 crore from their peak levels earlier in the year. The economics and policy analysis division of Sebi publishes the monthly bulletin. Over the course of the month, Foreign Portfolio Investors (FPIs) sold about ₹39,000 crore in debt and equity securities. The outflows totaled more than ₹1 lakh crore for the full year 2025.
In December, FPIs took out about ₹22,600 crore worth of stocks, bringing the total outflows to ₹1.7 lakh crore in 2025. According to the bulletin, the outflow was caused by the Indian market’s relative underperformance in comparison to its international counterparts, increased investor preference for markets dominated by up-and-coming IT businesses, currency volatility, rising trade tensions, and stretched market valuations.
The average daily turnover for the equities derivatives market decreased in December, falling 8% on the BSE and 11% on the National Stock Exchange.
