India sees fourth largest fund raise globally via IPOs in 2025
- IBEF
- October 10, 2025
Indian markets recorded the fourth largest fund raise via the initial public offering (IPO) route in CY25, accumulating Rs. 1,26,096 crore (US$ 14.2 billion), according to Bernstein. The United States (US) led with Rs. 4,69,752 crore (US$ 52.9 billion), followed by Hong Kong Rs. 2,07,792 crore (US$ 23.4 billion) and China Rs. 1,43,856 crore (US$ 16.2 billion). In rupee terms, 74 companies have raised Rs. 85,241 crore (US$ 9.6 billion) from primary markets in CY25, excluding three major IPOs, WeWork India, Tata Capital, and LG Electronics India, which together aim to raise nearly Rs. 30,000 crore (US$ 3.38 billion). The primary market mop-up in CY25 marks the third highest in the past five years, behind Rs. 1,59,784 crore (US$ 17.99 billion) via 91 offers in 2024 and Rs. 1,18,723 crore (US$ 13.37 billion) via 63 offers in 2021.
Bernstein noted that this activity is significant as foreign institutional investors (FIIs) have withdrawn nearly Rs. 1,59,840 crore (US$ 18 billion) from India’s secondary markets this year while investing Rs. 44,400 crore (US$ 5 billion) in primary markets, reflecting a clear distinction between primary and secondary market behaviour. Analysis of 161 companies listed since January 2024 shows that IPO investments have generally outperformed broad market indices, beating Nifty returns in five of the last seven quarters, with 61% outperforming Nifty in the past six months. Average listing gains stood at 22%, with over 53% delivering double-digit returns. Sector-wise, 28 IPOs (16%) came from consumer tech, green energy, and digital industries. Notably, smaller IPOs performed particularly well, with sub-Rs. 178 crore (US$ 20 million) IPOs delivering nearly 40% gains, Rs. 178-355 crore (US$ 20-40 million) IPOs at 31%, and the largest IPOs over Rs. 8,880 crore (US$ 1 billion) averaging 9%, demonstrating strong investor appetite for emerging Indian companies. The overall trend underscores India’s growing prominence as a destination for primary market investment and its dynamic capital markets ecosystem.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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