India's IPO Pipeline 2025: What’s Fueling the Next Wave of Equity Listings?

India’s equity capital markets are gearing up for a robust IPO season in 2025. With a favorable macroeconomic backdrop, growing retail investor confidence, and increasing participation from companies in Tier 2 and Tier 3 cities, the IPO pipeline in India for 2025 is expected to be strong and diverse.

Strong IPO Pipeline in 2025

As per data from Prime Database, over 80 companies have filed draft red herring prospectuses (DRHPs) with SEBI as of July 2025. This includes a healthy mix of traditional businesses and new-age tech-led startups.

This comes after a solid performance in 2024, when India saw over ₹65,000 crore raised through IPOs across 65 mainboard listings. Despite global volatility, Indian equity capital markets have remained stable due to strong domestic institutional and retail flows.

Favorable Market Conditions

The Indian economy continues to grow steadily, with the IMF projecting a 6.8% GDP growth rate for FY26. This growth, combined with moderating inflation and robust domestic consumption, is creating a positive environment for public listings.

The NSE Nifty and BSE Sensex touched record highs in mid-2025, driven by sustained corporate earnings and a stable interest rate environment. These conditions have improved valuation comfort for both issuers and investors.

Sectoral Diversity in Upcoming IPOs

The upcoming Indian IPOs in 2025 span across a wide range of sectors. Leading the charge are companies from:

• Financial services

• Manufacturing and infrastructure

• Renewable energy

• SaaS and digital platforms

• Consumer brands and retail

The market is also witnessing growing interest from family-run businesses and private equity-backed companies preparing for exits via public markets.

Retail Investor Participation is at an All-Time High

Retail investor participation in IPOs has reached new highs. According to NSE data, over 12 million retail applications were received for mainboard IPOs in H1 2025 alone.

What’s notable is the increasing confidence of retail investors in subscribing to IPOs from previously underrepresented regions and sectors. The median IPO application size has grown, reflecting a more informed investor base.

Increasing Involvement from Tier 2 and 3 Cities

One of the most encouraging IPO trends in India is the surge in investor activity from Tier 2 and Tier 3 cities. As per data from CAMS and Kfintech, over 35% of new IPO demat applicants in 2025 came from cities beyond the metros. Towns like Surat, Jaipur, Indore, Bhubaneswar, and Coimbatore are now major contributors to IPO subscription volumes.

This democratization of equity ownership is not only boosting market depth but also encouraging local companies in smaller cities to consider going public. It aligns well with SEBI’s regulatory push to bring more companies from diverse geographies to the listed universe.

Digital Infrastructure and Regulatory Support

The shift toward digital IPO processes has made IPO participation more seamless than ever. From UPI-enabled payment systems to instant demat account opening and e-KYC, the entire application journey can now be completed in minutes.

The government’s disinvestment roadmap is also expected to bring a few large public sector IPOs in sectors like defence and energy to the market in 2025, further adding momentum.

Challenges to Watch For

Despite the positive momentum, there are some risks that could impact the IPO pipeline in India in 2025:

• A sudden spike in interest rates globally

• Geopolitical instability or global recession fears

• Overvaluation in certain IPO-bound companies

• Post-listing performance concerns for new-age firms

Investors are becoming more selective, and companies need to demonstrate strong fundamentals, sustainable profitability, and transparent governance to attract attention.

Looking Ahead

India’s IPO market is evolving. The IPO pipeline in India for 2025 reflects the confidence of Indian entrepreneurs, the growing maturity of investors, and the strength of the capital market ecosystem.

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At Equirus, we continue to work closely with high-growth companies looking to enter public markets and support them across every stage of the listing journey. From pricing and positioning to regulatory coordination and investor outreach, our equity capital markets team is deeply integrated into the success stories of tomorrow.

The upcoming Indian IPOs represent more than just capital-raising events. They are a signal of India's growing economic resilience, financial inclusion, and the readiness of its businesses to compete on a global stage.