India’s IPO market holds firm in H1 2025 despite global jitters, says EY report

India’s IPO market holds firm in H1 2025 despite global jitters, says EY report

A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building. Photograph: (Reuters)

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Amid the global market turmoil, in the first half of 2025, India’s equity markets recorded 108 listings, raising $4.6 billion, despite a 30 per cent drop in deal volume year-on-year, says EY report. 

Amid global tradeturmoil, India’s equity markets have weathered global headwinds with notable resilience in the first half of 2025. According to EY’s latest report, the Indian IPO market recorded 108 listings, raising $4.6 billion, despite a 30 per cent drop in deal volume year-on-year.

While the number of IPOs declined, the capital raised fell only marginally by 2 per cent, signalling that fewer but stronger companies tapped the public markets. As per EY, this trend reflects a more selective and strategic approach by both issuers and investors, with firms focusing on market timing and valuations amid a volatile global backdrop.

Geopolitical and macro pressures delay listings

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Ongoing global uncertainties, including geopolitical tensions and macroeconomic risks, have led many high-profile companies to defer their IPOs, said the report, as quoted by ANI. However, the report adds that many firms have already secured regulatory clearances and are waiting for more favourable market conditions in the second half of 2025.

The IPO pipeline remains strong, particularly in high-growth sectors such as technology (including fintech) and healthcare, indicating pent-up demand and investor interest.

India among top 3 IPO markets

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Globally, the IPO market logged 539 deals raising $61.4 billion in H1 2025. While the deal count remained flat year-on-year, total proceeds saw a significant jump. The second quarter saw 241 IPOs worth $31.5 billion, making it the weakest Q2 for IPO volume since 2020, according to EY.

India, despite the dip, remains among the top three IPO markets globally, alongside the US and Greater China, each of which hosted more than 100 listings in the first six months of 2025.

Outlook: Signs of rebound in H2

Looking ahead, EY’s outlook remains optimistic. The report anticipates a rebound in the second half of 2025, supported by stabilising macroeconomic conditions, easing inflation, and pro-capital market government policies.

“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 EY report noted, as quoted by ANI.

Despite short-term volatility, India’s IPO ecosystem appears well-poised for growth, driven by institutional confidence, sectoral depth, and regulatory readiness.