New Delhi [India], December 25 : India's primary equity market scaled new heights in 2025, with companies raising a record Rs 1.95 trillion through more than 365 initial public offerings (IPOs), marking the strongest year ever for fundraising activity, according to a latest strategy report by Motilal Oswal Financial Services.
The milestone follows an already strong 2024, when Rs 1.90 trillion was mobilised through 336 IPOs. Together, the two years have seen Rs 3.8 trillion raised via 701 IPOs, surpassing the Rs 3.2 trillion collected over the entire five-year period between 2019 and 2023, the report said.
Mainboard listings continued to dominate the market, accounting for nearly 94% of the total funds raised in 2025. Of the 365 IPOs this year, 106 were mainboard issues, contributing Rs 1.83 trillion, while the remaining 259 SME (Small and Medium Enterprises) IPOs together raised a relatively modest share of capital.
Over the past two years, just 198 mainboard companies have raised Rs 3.6 trillion, underlining their outsized role in capital formation.
The year also witnessed Tata Capital raising Rs 155 billion in October 2025, the fourth-largest IPO in the country's history.
The report highlights a notable diversification in sector participation. In 2025, non-banking financial companies (NBFCs) led fundraising with a 26.6% share, followed by capital goods, technology, healthcare, and consumer durables. This marked a shift from 2024, which was dominated by automobiles, telecom, and retail. Interestingly, sectors such as utilities and private banking, which were significant contributors in 2024, saw no IPO fundraising in 2025.
Investor demand remained robust, with IPOs oversubscribed by an average of 26.6 times over the past two years. SME IPOs saw particularly strong interest, with subscription levels exceeding 100 times in many cases. Around 55% of mainboard IPOs listed over the last two years are currently trading above their offer prices, reflecting healthy post-listing performance.
While IPOs surged, qualified institutional placements (QIPs) moderated in 2025, with Rs 718 billion raised so far, down from a record Rs 1.36 trillion in 2024. State Bank of India alone accounted for about 35% of QIP fundraising this year. Meanwhile, offers for sale (OFS) remained subdued at Rs 204 billion, largely driven by stake sales from private promoters.
Motilal Oswal expects IPO momentum to remain strong, supported by sustained domestic institutional inflows and continued retail participation through mutual fund SIPs. Emerging themes such as renewable energy, quick commerce, and app-based business models are likely to drive the next wave of listings, reinforcing India's position as one of the world's most vibrant equity markets.
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