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Indian Initial Public Offering (IPO) activity in the first half of 2025 recorded 108 deals raising USD 4.6 billion, demonstrating market resilience despite a 30 per cent decline in transaction volume compared with the previous period, according to a report compiled by EY.
According to the report, fundraising proceeds declined only marginally by 2 per cent, indicating that while fewer companies accessed public markets, the quality and scale of offerings remained robust. The EY stated that the trend reflects a more selective approach by both issuers and investors, with companies prioritising optimal market timing and valuation strategies. The cautious environment has been shaped by ongoing global uncertainties and geopolitical tensions, leading several high-profile companies to postpone their listings or reassess valuations. Nevertheless, a strong pipeline of high-profile IPOs is ready to enter the market in the second half of 2025, as many companies are strategically waiting for improved conditions to launch their offerings. Despite these near-term headwinds, the regulatory environment remains supportive, with numerous companies having secured necessary approvals while maintaining readiness to launch their offerings when market conditions align with their strategic objectives. The pipeline remains particularly strong across key growth sectors, such as Technology, including fintech, and Health Care. The report added that the market participants anticipate improved performance in the second half of 2025, driven by stabilising macroeconomic conditions, easing inflationary pressures and supportive government initiatives aimed at strengthening capital market development. The combination of improving domestic economic fundamentals and a robust pipeline of quality issuers positions India's IPO market for potential acceleration as investor sentiment strengthens and market volatility subsides, the report added. As per the report, in the first half of 2025, the global IPO market recorded 539 deals, raising USD 61.4 billion, flat year-over-year (YOY) in terms of deal count, but reflecting a notable increase in total proceeds. The second quarter saw just 241 IPOs, with USD 31.5 billion in capital raised, which was the weakest second-quarter performance since 2020 by number. Asia-Pacific led with solid growth, and the Middle East stood out with expansion, while the Americas remained stable. In contrast, Europe and India experienced declines. Three markets, namely the US, India, and Greater China, each launched more than 100 IPOs in H1 2025, according to the report. (ANI)
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