IPO rebound elusive, tiny offers signal speculation

Mainboard IPOs see subdued demand, lower listing gains; SME segment shows buoyancy

- Mayur Bhalerao

After a blockbuster 2024 that saw Indian companies raise an all-time high of ₹1.69 trillion through initial public offerings (IPOs), the euphoria around IPOs appears to be softening in 2025. The mainboard segment, once flooded with enthusiastic bidders, is now witnessing lukewarm interest, subdued subscription levels, and sharply lower listing gains.

Meanwhile, the SME segment is showing some buoyancy. Activity remains strong, but analysts warn that the surge may be misleading, driven more by speculative enthusiasm and small issue sizes than by fundamental investor conviction.

As several high-profile IPOs prepare to debut in the coming months, all eyes are on whether India's primary market can rekindle its fire in 2025.

India's IPO story has seen a sharp rise since 2019, with a dramatic increase in fundraising—from ₹12,985 crore in 2019 to ₹1.19 trillion in 2021. After two relatively slower years, 2024 set a new benchmark with ₹1.69 trillion raised, according to Prime Database.

But 2025 has brought a reality check.