Is the IPO Market Outlook for H2 2025 Cautiously Optimistic?
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Synopsis
The IPO market in India for H2 2025 is showing cautious optimism as economic conditions improve. With a significant rise in funds raised despite fewer IPOs, the landscape is becoming more favorable for investors. Industry experts foresee potential growth, but caution remains regarding year-on-year comparisons.
Key Takeaways
- Positive IPO outlook for H2 2025 amid improving economic conditions.
- Rs 45,351 crore raised in the first half of 2025 signifies a strong performance.
- Number of IPOs decreased to 24 from 36 last year.
- Major companies are opting for larger issue sizes.
- Growing interest from investors, with 67% of IPOs debuting at a premium.
Mumbai, July 20 (NationPress) Experts have expressed a cautiously optimistic outlook for India's initial public offering (IPO) market in the second half of 2025.
According to Ratiraj Tibrewal, CEO of Choice Capital Advisors, there is an expectation of improving economic conditions in the upcoming months as global and domestic issues like inflation, interest rates, geopolitical uncertainties, and currency fluctuations start to stabilize.
This optimistic sentiment follows a robust performance in the first half of 2025, where companies successfully raised Rs 45,351 crore through IPOs despite persisting global trade tensions and macroeconomic worries.
The amount raised marks a significant 45 percent increase compared to the Rs 31,281 crore garnered during the same period last year.
Interestingly, while the total funds raised have surged, the number of IPOs decreased to 24 in January–June 2025, down from 36 in the same timeframe last year.
This trend indicates that companies are choosing to offer larger issue sizes, driven by strong investor interest.
Data from merchant bankers reveals that nearly 67 percent of the IPOs launched in the first half of the year debuted at a premium, yielding an average return of approximately 25 percent for investors.
Notable companies such as HDB Financial Services, Hexaware Technologies, Schloss Bangalore, and Ather Energy entered the market during this timeframe.
Most public offerings comprised a mix of new equity and offers for sale, with proceeds aimed at expansion, debt reduction, and working capital needs.
Additionally, there has been a notable increase in companies gearing up to go public, with the Securities and Exchange Board of India (SEBI) receiving draft IPO applications from 118 companies, a stark rise from 52 filings during the same period last year. This signals strong future activity in the market.
JM Financial has emerged as the frontrunner in the IPO sector, handling 10 issues that collectively raised Rs 26,838 crore in the first quarter of FY26, according to Prime Database.
Vinod Nair, Head of Research at Geojit Financial Services, noted that improving earnings in Q1 and Q2 of FY26, along with advancements on the India-US trade deal, could further enhance market sentiment.
However, he cautioned that the high benchmark of Rs 1.3 lakh crore raised in the latter half of 2024 could complicate year-on-year (YoY) comparisons, especially if there is a decline in foreign and retail investor inflows.
Point of View
I believe the cautious optimism surrounding the IPO market in H2 2025 reflects the resilience of our economy. While the increase in funds raised is a positive sign, we must remain vigilant of potential challenges. The growth in the number of companies looking to go public is encouraging, and it demonstrates the confidence in India's economic prospects.
NationPress
20/07/2025
Frequently Asked Questions
What is the outlook for the IPO market in H2 2025?
The outlook for the IPO market in H2 2025 is cautiously optimistic, with expectations of improving economic conditions.
How much was raised through IPOs in the first half of 2025?
Companies raised Rs 45,351 crore through IPOs in the first half of 2025.
What factors are contributing to the positive sentiment?
Factors such as easing inflation, interest rates, and geopolitical tensions are contributing to the positive sentiment.
How does the current number of IPOs compare to last year?
The number of IPOs fell to 24 in January–June 2025 from 36 during the same period last year.
Which companies have recently gone public?
Companies like HDB Financial Services, Hexaware Technologies, Schloss Bangalore, and Ather Energy have recently gone public.
