India’s primary market in 2025 combined record-breaking activity with increasingly discerning investor behaviour, creating one of the most active yet rational IPO years in recent times. Mainboard listings rose to 106 raising INR 1.83 lakh crore, while the SME segment matched the momentum with 260 listings, raising INR 12,210 crore.
Issuance Mix and Demand Patterns
Automotive, consumer discretionary, and industrial companies led fundraising, supported by financial services and technology. A key trend was the shift in investor behaviour:
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Mainboard IPO subscriptions increased to 29.2x from 25.3x in 2024, while retail participation moderated to 7.7x amid valuation concerns.
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SMEs recorded an average subscription of 69.6x, driven by strong HNI demand at 186x, though still lower than last year’s 175x overall and 427x in the HNI category.
SMEs emerged as the preferred high-risk, high-reward segment, with peak participation in Q2–Q3 and September.
Listing Performance and Market Differentiation
2025 marked a departure from 2024’s exuberance:
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Mainboard IPOs debuted with average gains of 9.06%
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SME listings gained 11.23%, both significantly lower than the previous year.
A clear size-performance pattern emerged: smaller IPOs outperformed larger ones. Issues under ₹2 billion delivered 37% gains, compared with 29% for ₹50 billion-plus offerings.
Standout Moment: The LG Electronics Frenzy
LG Electronics dominated market headlines with a record INR 4.4 trillion in bids, marking the highest-ever subscription for a domestic IPO. The issue was 54x subscribed overall, including 166x from QIBs, leaving retail investors largely dependent on lottery-based allocations a trend seen in several high-interest offerings.
Sentiment and Market Behaviour
Despite abundant domestic liquidity, investor sentiment remained cautious. Global headwinds, FPI outflows, valuation pushback, and the rise of OFS-led structures encouraged discipline. Yet, steady SIP inflows and growing DII participation ensured that supply did not outpace demand.
Overall, 2025 was a year of high volumes, sharper pricing discipline, and clear performance divergence, with SMEs dominating participation and smaller, sensibly priced offerings leading returns.
Outlook for 2026
The outlook for 2026 appears positive for the Nifty, supported by several policy-driven tailwinds:
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GST-related benefits and the growth impulse from rate cuts in 2025 are expected to reflect in economic activity.
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The revised tax structure, with zero tax up to ₹12 lakh, should further support consumption and household spending.
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H2 performance is expected to outpace H1, with the market positioned for a growth rebound backed by favourable policies and improved foreign inflows as global quantitative tightening pauses and easing cycles potentially resume.
The upcoming Union Budget is likely to provide additional room for infrastructure and capital expenditure, supporting the investment cycle in 2026 after a temporary slowdown in 2025 due to lower tax collections.
