India’s initial public offering (IPO) market is on an unprecedented run, driven by the financialisation of household savings, digital ease of investing, and robust participation from both retail and institutional investors, according to investment bankers.
The deepening domestic capital pool has significantly reduced reliance on foreign institutional investors, improving market stability. October 2025 marked a watershed moment — the busiest month ever for mainboard IPOs. Fourteen public issues collectively sought to raise more than Rs 46,000 crore, the highest monthly fundraising tally in India’s capital-market history.
The month’s boom was anchored by two mega offerings — Tata Capital’s Rs 15,512 crore IPO and LG Electronics India’s Rs 11,607 crore issue — together accounting for over half the total. Other notable listings included Lenskart Solutions’ Rs 7,278 crore IPO, alongside WeWork India, Canara HSBC Life Insurance, Orkla India, and Rubicon Research. The October total comfortably eclipsed the previous record of Rs 38,690 crore set in October 2024.
Cumulatively, 89 IPOs have raised more than ₹1.38 lakh crore in 2025, cementing it as one of India’s strongest IPO years to date. The surge underscores deep market liquidity, heightened investor participation, and enduring confidence in India’s growth story despite mixed secondary market performance.
According to an analysis shared on Groww’s YouTube channel, IPO fundraising between October 2024 and September 2025 surged nearly 90% year-on-year, from Rs 9,436 crore to Rs 17,897 crore. Kotak Mahindra Capital expects over $20 billion in IPO fundraising for FY26, with nearly $11.5 billion already mobilised in the first nine months.
The reasons are multifold. India remains one of the world’s fastest-growing economies, with the RBI revising FY26 GDP growth upward to 6.8%. Three repo rate cuts this year have brought the policy rate to 5.5%, while retail inflation eased to an eight-year low of 1.54% in September 2025. The combination of strong growth, cheaper borrowing, and record mutual fund inflows has bolstered liquidity — a key factor fuelling IPO appetite.
Attractive valuations, better disclosures, and SEBI’s September 2025 IPO reforms have further strengthened investor confidence. Offshore fund flows have also surged, with ₹26,500 crore invested in IPO anchor segments in FY25, per NSDL data.
To capitalise on this momentum, asset managers have launched funds focused on newly listed companies. The Edelweiss Recently Listed IPO Fund – Direct Growth, launched in 2018, invests primarily in equity and related securities of the 100 most recent IPOs. Managed by Bharat Lahoti and Bhavesh Jain, the fund held ₹954 crore AUM as of September 2025. Top holdings include Hyundai Motors, Vishal Mega Mart, Swiggy, and Dr. Agarwal’s Healthcare. About 80% of its portfolio targets recently listed growth-oriented businesses, while 20% is selectively invested in cyclical sectors.
Meanwhile, the Mirae Asset BSE Select IPO ETF FoF – Direct Plan, launched in March 2025, tracks the BSE Select IPO Index, which includes 20–100 companies with at least three months of listing history. Managed by Ekta Gala and Akshay Udeshi, the fund had an AUM of ₹7,118 crore as of September 2025 and maintains a low expense ratio of 0.14%.
Both funds provide investors with structured exposure to India’s booming IPO ecosystem. While the Edelweiss fund adopts a thematic, actively managed approach suited for SIPs and 3+ year horizons, the Mirae fund offers a passive, index-linked option ideal for long-term investors.
As India’s IPO market scales new highs, these funds allow investors to participate in the country’s dynamic listing story — steadily, systematically, and with the long view in mind.
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