IPO Boom Continues, But Investors Must Prioritize Business Strength & Quality

• India's IPO market expects continued activity, but investors need to be more selective, focusing on business quality, governance, and valuations.
• Pranav Haldea of Prime Database states India's primary market is structurally stronger with a mature funding ecosystem and deeper institutional participation.
• India saw a record year for IPOs in 2025 (₹1.75 lakh crore), marking the first time for two consecutive record fundraising years, indicating market maturity.
• A major trend is a higher share of Offer-for-Sale (OFS) IPOs, where existing investors sell stakes, reflecting companies coming to market later after proving models.
• OFS IPOs have shown better long-term returns than fresh issues; investors should focus on company fundamentals rather than short-term gains or blindly chasing listings.

Why It Matters: India's IPO market is maturing; success now hinges on selecting strong businesses, not just new listings.