India's IPO Market: A Tale of Two Industries in 2025

India's IPO market saw significant activity in the first nine months of 2025, with 65 mainboard listings. Despite a rise in the funds raised, investor enthusiasm waned. Meanwhile, the SME IPO market thrived, showing strong resilience and growth, particularly in manufacturing and services, across various states.

New Delhi [India], November 15: The first nine months of 2025 witnessed a surge in India's IPO market, ending with a total of 65 mainboard listings. While the number exceeded last year's count, funds raised also saw a 26.4% increase, totaling INR 80,904 crores. However, the marginal rise in pricing led to a dampening of investor enthusiasm.

The IPO Grey Market Premium dropped significantly, with average premiums slumping to just 10.8% of the issue price, less than half of last year's figure. This led to subdued listing expectations, as the difference between GMP-implied and actual listing pricing rose to 2.8% from 1.9% in 9M 2024. Consequently, debut day returns also fell sharply to +11.44%, compared to +31.07% the previous year.

In stark contrast, India's SME IPO market flourished, with 183 companies making their debut, raising INR 8,620.5 crore. Dominated by the Capital Goods sector, the market exhibited growth in Maharashtra, Gujarat, and other key states. This shift emphasizes resilience in SME listings and suggests a broader manufacturing revival across India.