Indian Companies to Raise $35 Billion in 2025 Through IPOs: Kotak Mahindra As part of the findings of the annual roundtable at KMCC, it reported that a majority of the USD 9 billion of the IPOs in the pipeline is poised to come from the financial services sector, adding that it includes the likes of HDB Financial Services, Avanse Financial Services and also Tata Capital.
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The overall IPO market will reach USD 35 billion in 2025, a massive uptick from last year's USD 22 billion raised from a total of 91 companies, according to Kotak Mahindra Capital Company (KMCC).
As part of the findings of the annual roundtable at KMCC, it reported that a majority of the USD 9 billion of the IPOs in the pipeline is poised to come from the financial services sector, adding that it includes the likes of HDB Financial Services, Avanse Financial Services and also Tata Capital.
Digital technology companies are poised to follow with approximately USD 5 billion in the pipeline, with expected IPOs from household names such as Ecom Express, Ola, Zepto, and Pepperfry in 2025.
KMCC also said that the listing sizes are increasing consistently and companies are looking at the public market, as a major source of funding.
In the previous year, the average listing-day premium for the IPOs was recorded at 32.8 per cent, said KMCC while adding that the foreign portfolio investors are also relying on IPOs to invest in India, preferring public fundraising over the secondary market route.
The company also noted that the success of Hyundai's mega INR 27,000 IPO has spurred many multinationals to eye the public market, and potentially unlock the value of their investments through this route.
Foreign portfolio investments (FPIs) have also played a pivotal role in shaping the IPO market in India. A report by the National Securities Depository Limited (NSDL) highlighted that FPIs allocated more than USD 4 billion in 2024 toward IPOs, leveraging the country's economic growth and structural reforms.
According to a report by Prime Database, 2024 also saw an average oversubscription of 30 times, indicating strong investor appetite for fresh listings, with the financial services and technology sector dominating the landscape, contributing over 50 per cent of the total issuances.
KMCC further said that the market returns were diversified in 2024 across small,mid-cap, and large cap companies, with IPOs in CY24 having given strong returns of 32.8 per cent on average.
The trend underscores the growing significance of the IPO route as the primary avenue for both raising capital and investment diversification.
