India's IPO Market Defies Global Odds in H1 2025 – What EY's Report Reveals!

India's Initial Public Offering (IPO) market demonstrated impressive resilience in the first half of 2025, as 108 deals raised a healthy $4.6 billion. This effort, highlighted in an updated report by EY, is despite a clear 30 per cent reduction in transaction volume from the previous period, indicating a strategic turn towards quality rather than quantity in the country's public market environment.

Although the number of transactions declined sharply, the aggregate fundraising proceeds registered only a modest 2 percent fall. This means that fewer firms came to the public markets, but those that did were defined by strong offerings and large scale. In line with EY, this trend is a sign of more deliberate strategy followed by both the issuers and the investors, with more emphasis placed on best time in the market and refined valuation techniques.

The risk-averse climate dominating in H1 2025 has been driven primarily by continuing global uncertainties and lingering geopolitical tensions. These factors have led some of the top companies to delay their listings or reassess their valuations, aiding the decline in deal volume.

In spite of these short-term challenges, the second half of 2025 looks positive. There is a good pipeline of high-profile IPOs that are said to come to market, with most of these firms strategically holding back in better times to bring out their issues. In addition, the regulatory backdrop in India is still favorable, with several organizations having already obtained the requisite approvals and being in readiness to open when market conditions fit their strategic plans.

Key Sectors Contributing Growth

The key growth industries, technology (fintech included) and health care, are playing a big role in this strong pipeline. Market players are expecting better performance in H2 2025, supported by a mix of stabilizing macroeconomic environments, abating inflationary pressures, and active government policies to enhance capital market development. This intersection of strengthening domestic economic fundamentals and a robust pipeline of high-quality issuers sets India's IPO market up for possible acceleration as investor confidence strengthens and market volatility recedes.

Internationally, the global IPO market in the first half of 2025 saw 539 deals raise $61.4 billion. Although the number of deals was steady year-on-year, there was a significant rise in total proceeds. The second quarter, however, recorded a softer performance, as 241 IPOs raised $31.5 billion, making it the worst second-quarter performance since 2020 in terms of deal activity. 

  Regionally, Asia-Pacific was a leader with robust growth, and the Middle East recorded strong expansion, while the Americas recorded stability. Europe and India, on the other hand, recorded a decline in deal activity, although India's fundraising resilience is notable. In particular, three markets—the US, India, and Greater China—each of which spearheaded over 100 IPOs in H1 2025, emphasized their remaining significance in the global IPO market.

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