India’s IPO market could add US$2 trillion to US$3 trillion in market value over the next decade, according to Vishal Kampani, vice chairman and managing director of JM Financial Ltd.

In 2025 alone, IPOs have raised over US$6 billion.

HDB Financial Services Ltd. led with a US$1.5 billion listing, followed by ICICI Prudential Asset Management Co., which filed to raise up to US$1.2 billion.

In 2024, IPOs raised nearly US$21 billion, including Hyundai Motor Co.’s record-breaking listing.

Kampani noted that while some valuations may seem high, the long-term outlook remains positive.

The Nifty 50 Index is up about 8% this year, with pricing power shifting toward domestic investors.

Upcoming IPOs include Tata Capital Ltd. (US$2 billion), PhonePe (US$1.5 billion), and LG Electronics Inc.’s Indian unit, which may return to the market by September.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ India’s domestic capital is reshaping IPO market dynamics

Kampani’s observation about pricing power shifting to local investors represents a significant structural change in India’s capital markets.

Recent IPO data confirms this trend, with several 2025 IPOs delivering exceptional returns including KRN Heat Exchange (94.96%), Interarch Building Products (75.17%), and Diffusion Engineering (67.2%) – all driven primarily by domestic investment appetite1.

This contrasts sharply with a decade ago when foreign institutional investors largely determined IPO success, highlighting how India’s financial ecosystem has matured internally.

The rise of retail participation has effectively democratized India’s IPO market, contributing to increased activity and stability even during periods of global uncertainty2.

India’s current IPO pipeline, including Tata Capital’s planned $2 billion offering and PhonePe’s potential $1.5 billion raise, is built on confidence in this robust domestic investor base rather than depending primarily on foreign capital.

2️⃣ India’s IPO market shows unique resilience compared to global trends