India's IPO Market Soars to Record High in 2025, But Challenges Emerge

• India's IPO fundraising hit a record ₹1.76 lakh crore in 2025, marking two consecutive record years.
• Overall public equity fundraising declined 18% despite the IPO boom, dragged by QIPs, FPOs, OFS.
• Mega IPOs like Tata Capital dominated, but average deal sizes remained stable at ₹1,708 crore.
• Retail interest cooled, and average listing gains sharply fell to 10% from 30% in 2024, showing valuation fatigue.
• Mutual Funds surpassed FPIs as anchor investors for the first time; 2026 pipeline remains robust.

Why It Matters: 2025 was a record IPO year for India, but signs of valuation fatigue and moderating investor enthusiasm appeared.