Fundraising through initial public offerings (IPOs) in India increased to Rs 45,350 crore (US$5.46 billion) during the first half of 2025, marking a 45% rise compared with the same period last year, despite ongoing global trade and economic challenges.

However, the number of IPOs decreased to 24 from 36 in the first half of 2024. This decline reflects an increase in the average size of offerings, with the total raised exceeding the Rs 31,281 crore (US$3.77 billion) collected in the same timeframe in 2024.

Data from merchant bankers indicates that 118 companies submitted preliminary papers to the Securities and Exchange Board of India (SEBI) during this period, higher than the 52 submissions recorded in the first half of 2024.

Notable IPOs included HDB Financial Services (US$1.51 billion), Hexaware Technologies (US$1.05 billion), Schloss Bangalore (US$421.69 million), and Ather Energy (US$359.16 million).

Proceeds from these offerings were primarily used for business expansion, debt repayment, and working capital needs.

The manufacturing and infrastructure sectors led the IPO market. Around 67% of the IPOs were listed at a premium, yielding an average return of 25% for investors.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Shift toward larger IPOs signals market maturity and selective investor appetite

The data reveals a clear trend toward fewer but larger public offerings in India, with the average IPO size growing significantly to approximately Rs 1,890 crore in H1 2025, compared to Rs 869 crore in the same period of 2024.

This pattern is evident in the 33% decrease in the number of IPOs (from 36 to 24) while total capital raised increased by 45% to Rs 45,350 crore.

Large offerings dominated the landscape, with just four companies (HDB Financial Services, Hexaware Technologies, Schloss Bangalore, and Ather Energy) accounting for approximately 61% of the total funds raised.

This concentration suggests investors are favoring established businesses with proven revenue models during uncertain economic conditions, rather than spreading capital across a larger number of smaller, potentially riskier ventures.

The strong 25% average return despite macroeconomic headwinds indicates quality offerings are still finding substantial market support, even as the bar for public market entry appears to have been raised.

2️⃣ Manufacturing and infrastructure IPOs reflect India’s economic priorities and investor confidence

The dominance of manufacturing and infrastructure companies among the H1 2025 IPO cohort aligns directly with India’s broader economic focus on strengthening core industrial capacity and infrastructure development.