Digital IPOs climb the m-cap ladder

India's primary market is undergoing a quiet transformation.

- Mayur Bhalerao

A cluster of new-age technology companies has emerged, following an early cohort that listed at rich valuations and later corrected sharply. These firms now account for a quarter of the market capitalization raised on the mainboard this year, a shift that underscores how rapidly investor perceptions have changed.

Initial public offering (IPOs) of tech companies so far in 2025 collectively command a market cap of ₹2.8 trillion, or 25% of the combined valuation of all new listings. To put it plainly: one in every four rupees of debutants’ market value now comes from tech. That’s a sharp rise from just 3% in 2022 and 5% in 2023, with 2024 offering the first real signal when tech contributed ₹2.3 trillion, or 17%, according to Prime Database.

The average tech IPO subscription this year is 19.6x, an impressive figure, but skewed by a few runaway successes.

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But while the numbers point to a structural shift, the underlying IPO market remains uneven, heavily influenced by a handful of standout issues and a growing focus on profitability and governance.

A value reset