India continues to shine bright on the global stage, making up 22% share of total global IPO activity in the first quarter of 2025 thus far, a report by consultancy firm EY said. “With 62 IPOs raising a total of $ 2.8-bn, India remains a leading destination for companies seeking to go public, even amidst a backdrop of global market uncertainties,” the report said.
During the period, Hexaware Technologies emerged as the largest public offer in the Indian primary market, raking in a staggering $1-bn, showcasing the resilient demand for tech-related offerings, the EY report stated.
Despite the sustained resilience of India’s primary market when compared to global peers, the overall IPO activity actually declined around 20% from a year ago. The slowdown in public offerings was largely triggered by weak market conditions that weighed down on investor sentiment.
The EY report also underscored the diversity within India’s IPO landscape, with robust activity spreading sectors such as industrials, real estate, hospitality & construction, and health & life sciences. Among these, EY pointed towards the health sector being a standout, showing a sharp uptick in IPO pipeline momentum. “While completed listings saw mixed performances, the underlying strength and solid fundamentals of many Indian companies are expected to keep investor interest intact,” EY said.
"India's IPO market continues to be a beacon of resilience and growth. The strong performance in Q1 2025, despite global uncertainties, highlights the robust fundamentals and investor confidence in our market. We are optimistic that this momentum will carry forward, driven by supportive policies and a dynamic economic environment,” Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader, Indian member firm of EY Global said.
On the other hand, Prashant Singhal, Partner and Markets Leader, EY India also shed light on the robust Mergers and Acquisitions (M&A) activity in the Indian market. "The record-breaking Mergers and Acquisitions (M&A) market demonstrates its maturity. Q1 2025 saw all-time high M&A deal volumes with transactions valued at billions of dollars, reflecting strong investor confidence and strategic investments. This M&A surge, driven by domestic activity and international interest, complement the IPO market, highlighting a healthy and dynamic Indian financial landscape,” Singhal said.
Looking ahead, the IPO pipeline for 2025 looks promising with a healthy share of companies lined up for their market debut. In addition to that, EY also believes that the growing retail interest in the Indian stock market, combined with favourable economic indicators further bolsters investor confidence, giving life to these public offerings.
