India has emerged as a key player in global capital markets, accounting for 22% of global IPO activity in Q1 2025, according to Ernst & Young (EY). While IPO volumes declined worldwide, Indian markets bucked the trend, raising $2.8 billion from 62 listings on the NSE and BSE.
The report credits this strong performance to resilient market fundamentals and a rising number of profitable IPOs. While the total number of IPOs declined by around 20% compared to the previous year, the average deal size grew, indicating a healthy pipeline of financially sound companies.
Retail investor participation also saw a notable boost, fueled by consistent returns and positive sentiment around public offerings. Key sectors that drove IPO momentum included Industrials, Real Estate, Hospitality & Construction, and Health & Life Sciences.
Hexaware Technologies led the quarter with a standout $1 billion IPO, marking the largest public offering during the period. This reflects continued investor appetite for technology-driven firms in India.
Adding to the positive outlook, the report noted that mergers and acquisitions (M&A) activity hit an all-time high in terms of deal volumes, signaling sustained investor confidence in India’s financial ecosystem.
Analysts are upbeat about the outlook for India’s IPO and M&A markets, citing the nation’s robust economic momentum and stable regulatory framework as key drivers of ongoing domestic and foreign investment.
