India bags 22% of global IPO share, rakes in $2.8-bn in Q1 2025: EY report

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Indian primary markets showcased resilience and growth in the quarter of 2025 (Q1 2025) by securing a 22 per cent share of global initial public offering (IPO) activity, said a report released by Ernst & Young (EY). Despite a decline in volume, the percentage of profitable IPO companies surged, reflecting strong market fundamentals.

 

During the period, a combined 62 IPOs listed on the National Stock Exchange (NSE) and BSE, raising $2.8 billion in proceeds. "India remains a leading destination for companies seeking to go public, even amidst a backdrop of global market uncertainties," reads the report. "India remains a leading destination for companies seeking to go public, even amidst a backdrop of global market uncertainties."

 

The report suggested that retail investor participation was influenced by a notable increase in the percentage of profitable IPO companies, reflecting strong market fundamentals. The active sectors included Industrials, Real Estate, Hospitality & Construction, and Health & Life Sciences.

 

However, the overall IPO activity in India saw a decline of approximately 20 per cent compared to the previous year, reflecting cautious investor sentiment as the BSE Sensex index experienced a slight decrease of 1.1 per cent during the period. Nevertheless, despite a decline in volume, "the growth in deal size indicates a robust pipeline of financially sound candidates."

 

Notably, Hexaware Technologies' public offering was the largest during the period, which successfully raised $1.0 billion, highlighting the ongoing demand for technology-related offerings in the Indian market, according to the report.

 

"While the impressive IPO proceeds in Q1 2025," Prashant Singhal, partner and markets leader, EY India, said, "highlighting the strength of India's capital markets, the record-breaking Mergers and Acquisitions (M&A) market further demonstrates its maturity. Q1 2025 saw all-time high M&A deal volumes with transactions valued at billions of dollars, reflecting strong investor confidence and strategic investments. This M&A surge, driven by domestic activity and international interest, complements the IPO market, showcasing a healthy and dynamic Indian financial landscape. We anticipate continued momentum in both public and private markets as companies pursue growth."

 

The EY report further highlighted that the IPO landscape in India remains diverse, with significant activity across sectors such as Industrials, real estate, hospitality & construction, and health & life sciences. "The health sector, in particular, recorded notable growth, with a substantial increase in the IPO pipeline. Despite the mixed performance in completed listings, the strong fundamentals of many companies are expected to attract investor interest.

  "India’s dynamic stock market, coupled with favourable economic indicators, continues to bolster investor confidence. The growing participation of retail investors is evident, as the market adapts to shifting dynamics and investor preferences," read the report.

 

Meanwhile, Adarsh Ranka, partner and financial accounting advisory services leader, Indian member firm of EY Global, remains optimistic that this momentum will carry forward, driven by supportive policies and a dynamic economic environment.  "India's IPO market continues to be a beacon of resilience and growth. The strong performance in Q1 2025, despite global uncertainties, highlights the robust fundamentals and investor confidence in our market. We are optimistic that this momentum will carry forward, driven by supportive policies and a dynamic economic environment,” said Ranka.