India's IPO Market Shines with 22% Global Share in Q1 2025

In Q1 2025, India captured 22% of global IPO activity, with 62 IPOs raising $2.8 billion, reinforcing its appeal amid global uncertainty. Despite a 20% decline from last year, notable activity in technology, health, and real estate sectors, fueled by strong investor confidence, supports ongoing market optimism.

India's IPO market has shown remarkable resilience, capturing a significant 22% share of global IPO activity during the first quarter of 2025. According to EY's Q1 2025 IPO Trends Report, India saw 62 IPOs, collectively raising USD 2.8 billion, marking the country as a preferred destination for public listings amid global market uncertainties.

The report notes that Hexaware Technologies Ltd.'s USD 1.0 billion IPO was a standout, underscoring the demand for technology sector offerings in India. However, there has been a 20% decline in overall IPO activity compared to the previous year. Prashant Singhal of EY India highlighted that this dip mirrors cautious investor sentiment, especially as the BSE SENSEX index recorded a 1.1% drop.

Additionally, India's M&A activities saw an all-time high in Q1 2025, with transactions reaching into the billions, demonstrating the maturity of India's financial markets. The surge, driven by both domestic and international interest, complements the varied IPO landscape across sectors like Industrials, Real Estate, and Health & Life Sciences.

Despite mixed IPO performances, the health sector recorded significant growth in its pipeline. Retail investors' growing participation reflects the evolving dynamics of India's stock market, further supported by favorable economic indicators. Adarsh Ranka from EY Global expressed optimism about the strong fundamentals and supportive policies bolstering investor confidence.

Overall, the resilience and robust performance of India's IPO market in early 2025 sets a promising tone for the year, as companies continue to navigate the shifting market environment.

(With inputs from agencies.)