IPO fundraising in H1 up 45% to Rs 45,350 Cr despite global trade headwinds

Fundraising through initial public offerings (IPOs) rose to Rs 45,350 crore in the first half of 2025, marking a 45% increase from a year ago, despite global trade headwinds, geopolitical conflicts, and macroeconomic concerns.

However, the number of IPOs declined to 24 during the period under review from 36 in the January-June period of 2024, indicating a rise in the average size of public issues.

Going forward, the IPO market is expected to remain cautiously optimistic in the second half of 2025, supported by robust inflows of domestic investment, positive investor sentiment, and strong growth visibility, experts said.

According to data shared by merchant bankers, 24 companies mobilised Rs 45,351 crore in the January-June period of 2025, compared to Rs 31,281 crore raised by 36 firms during the same period last year.

"The first half of the year saw market sentiment tempered by ongoing global trade tensions, geopolitical uncertainties, and macroeconomic challenges. Despite these concerns, companies successfully raised over Rs 45,000 crore via IPOs during this period," said Neha Agarwal, Managing Director and Head - Equity Capital Markets, JM Financial Institutional Securities.

Adding to the momentum, the first half of 2025 also witnessed a sharp rise in draft IPO filings with the Securities and Exchange Board of India (SEBI). A total of 118 companies submitted preliminary papers, up from 52 in the corresponding period of 2024.

JM Financial led the IPO league table, topping both volume and value charts with 10 issuances collectively raising Rs 26,838 crore in Q1FY26 alone, according to data from Prime Database.

During the January-June 2025 period, 24 mainboard IPOs were launched, with 67% of them listing at a premium. The overall performance of IPOs remained strong, delivering an average return of around 25% to investors.

Among the major IPOs launched during this period were HDB Financial Services (Rs 12,500 crore), Hexaware Technologies (Rs 8,750 crore), Schloss Bangalore (Rs 3,500 crore), and Ather Energy (Rs 2,981 crore).

Most of these IPOs consisted of a mix of fresh equity issuance and offer for sale by existing shareholders. The proceeds were primarily used to fund business expansion plans, repay debt, and meet working capital requirements.

A majority of the companies accessing the IPO route belonged to industrial sectors such as manufacturing and infrastructure, reflecting continued investor interest in core economy-driven businesses.

Further, in July, at least four IPOs have been launched and at least five are in the pipeline, indicating sustained market activity.

Looking ahead to the second half of 2025, the outlook remains cautiously optimistic, Ratiraj Tibrewal, CEO of Choice Capital Advisors, said.

He noted that economic conditions are expected to improve in H2 compared to H1, due to easing global and domestic headwinds such as inflation, interest rates, geopolitical tensions, and currency volatility.

Vinod Nair, Head of Research at Geojit Financial Services, added that this improvement could bode well for the stock market. However, he cautioned that premium valuations and a potential lack of foreign institutional and retail investor inflows could weigh on a year-on-year basis, considering the high base of Rs 1.3 lakh crore in H2CY24.

He further noted that earnings upgrades in Q1 FY26 and Q2 FY26, along with progress on a trade deal with the US, will play a key role in shaping the IPO market trend in the latter half of the year.