22-07-2025
India's IPO Market Among World's Most-Active: Report
India's IPO valuations remain elevated, with a price-to-earnings ratio of around 27x—on par with US markets
India remains one of the most active IPO markets globally by number of listings. However, continues to trail the US and China in total capital raised, according to EY's latest Global IPO Trends report.
In the first half of 2025, Indian markets saw 108 IPOs raise $4.6 billion—accounting for just 8% of global IPO proceeds, compared to 28% for the US and 34% for China. While fundraising dipped marginally by 2% year-on-year, the number of IPOs declined 30%, indicating a strategic shift toward fewer but higher-quality listings.
The EY report notes that issuers are becoming more selective about timing and structure, while investors are prioritising companies with strong fundamentals and clear growth visibility. The subdued activity comes against a backdrop of global uncertainty, with many firms delaying IPO plans or revising valuations amid geopolitical and macroeconomic volatility.
Despite the cautious tone, the second half of the year could witness a pickup, supported by a strong pipeline from sectors like technology, fintech, and healthcare. Several companies have already secured regulatory approvals and are on standby, awaiting more favourable market conditions.
Globally, the IPO landscape has been mixed. The US recorded 109 IPOs—the highest first-half tally since the 2021 boom—but raised comparatively lower funds. China saw a 30% jump in deal activity, with proceeds tripling due to larger offerings and robust investor interest.
EY outlines two divergent scenarios for the rest of 2025. In one, easing global headwinds could boost IPO momentum. In the other, persistent macroeconomic stress could keep both issuers and investors in wait-and-watch mode, slowing down activity and tempering valuations.
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