By ipomarket.in Editorial Team · Last reviewed: 2026-10-10
Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please read the offer document carefully and consult a SEBI-registered investment advisor before investing.
India's primary market closed 2025 on a record note and heads into 2026 with one of the deepest pipelines it has ever carried. For retail investors, the headline numbers are genuinely large. But the data also carries a quieter warning: strong listing-day pops do not always translate into strong long-term returns. This piece pulls together the verified figures so you can see both sides clearly.
A record-setting 2025
India recorded 103 mainboard IPOs raising Rs 1,75,901 crore in 2025. That is roughly 10% higher than 2024, when 91 IPOs raised Rs 1,59,784 crore. The average mainboard IPO size in 2025 worked out to Rs 1,708 crore, pointing to a market where large issuers are increasingly comfortable tapping public capital.
Activity went well beyond the companies that actually listed. A record 249 companies submitted draft offer documents (DRHPs) to SEBI in the mainboard segment in 2025, compared with 145 in 2024. A DRHP, or Draft Red Herring Prospectus, is the detailed disclosure document a company files before it can launch an IPO. If you are new to it, our guide on what a DRHP is and how to read it walks through the key sections.
The SME segment, aimed at smaller companies, also grew. SME IPOs raised Rs 11,430 crore in 2025 through 267 issues, a 30% jump from Rs 8,761 crore through 240 issues in 2024.
India's place on the global map
The scale is not just large by Indian standards. India ranked first globally in terms of total number of IPOs and issuances, according to then SEBI Chairperson Madhabi Puri Buch. For context on the preceding year, India's primary market raised Rs 1.713 trillion through 333 new listings across all segments in 2024, and 76 mainboard IPOs alone raised Rs 1.3 trillion in the first 11 months of 2024.
The single largest deal in Indian history remains Hyundai Motor India, which raised Rs 27,858.75 crore in 2024. Issues of that size illustrate why the average ticket has risen and why global investors are watching the Indian book-building process closely.
The 2026 pipeline
Momentum appears set to continue. Over 190 mainboard companies are in the pipeline for 2026, with 84 already securing SEBI approval, collectively seeking to raise approximately Rs 1.14 trillion. That is a large forward book, though approval does not guarantee a company will go ahead, and the final raised amount depends heavily on market conditions through the year.
If you want to track what is coming, our upcoming IPOs 2026 list and the live IPO calendar are the places to start.
Listing gains look strong — the long term is harder
This is the part retail investors most need to understand. The listing-day story and the multi-year story are not the same.
According to research covering 2012 to 2025 published by Wealthease, Indian IPOs generated an average listing-day gain of 23.22%, with 72% of companies delivering positive listing gains. On the face of it, that suggests most IPOs reward investors on day one. We present this as reported research rather than established fact, since it reflects one dataset.
The same research reportedly shows returns fading over time. Average IPO returns were highest in the first year after listing at 20.29%, declining to 10.03% at two years and 8.72% at three years post-listing. In other words, the strongest performance tends to be front-loaded.
A separate longitudinal study of 500 IPOs from 2014 to 2023, published in the IJFMR, reportedly found average listing-day returns ranging from 18.98% to 26.35%, but noted that long-term returns showed many IPOs underperforming five years after listing. A further academic study reportedly found that large-size IPOs performed better than small and medium-size IPOs on a market-adjusted basis. None of these findings should be read as a prediction for any specific company.
The practical takeaway is simple. A positive listing day is common, but holding blindly for years is not automatically rewarded. For a framework on deciding your exit, see our note on listing-day strategy: when to sell or hold.
What the retail quota means for you
SEBI reserves a minimum of 35% of IPO shares for retail individual investors (RIIs), who can apply for up to Rs 2 lakh per IPO. In an oversubscribed issue, that quota is distributed by lottery, so a large application does not guarantee an allotment. If you want to understand how shares actually get distributed, read our explainer on the IPO allotment process.
How to read a record year without getting carried away
Record fundraising, a number-one global ranking, and a deep 2026 pipeline are real positives for market depth and choice. They do not, by themselves, tell you whether any single IPO is fairly priced. The research above is a useful reminder that averages hide wide variation: some issues deliver, many fade, and valuation at the offer price matters more than the size of the headline.
Treat the macro numbers as context, then do company-level work: read the DRHP, study the financials, understand the business, and judge the price band on its own merits rather than on grey-market chatter.
FAQ
How many mainboard IPOs did India have in 2025 and how much did they raise?
India recorded 103 mainboard IPOs raising Rs 1,75,901 crore in 2025, up about 10% from 91 IPOs raising Rs 1,59,784 crore in 2024. The average mainboard issue size in 2025 was Rs 1,708 crore.
Is India really the top IPO market in the world?
India ranked first globally in terms of total number of IPOs and issuances, according to then SEBI Chairperson Madhabi Puri Buch. This ranking is based on the count of listings and issuances, not on total capital raised.
Do IPOs usually make money on listing day?
Research covering 2012 to 2025 reportedly found an average listing-day gain of 23.22%, with 72% of companies posting positive listing gains. This is reported research based on one dataset and not a guarantee for any future IPO.
Do IPOs stay profitable over the long term?
Reported research suggests returns fade over time: an average of 20.29% in the first year, 10.03% at two years, and 8.72% at three years post-listing. A separate study of 500 IPOs from 2014 to 2023 reportedly found many IPOs underperforming five years after listing. Long-term outcomes vary widely by company.
What portion of an IPO is reserved for retail investors?
SEBI reserves a minimum of 35% of IPO shares for retail individual investors, who can apply for up to Rs 2 lakh per IPO. Allotment in oversubscribed issues is decided by lottery.
Last reviewed: 2026-10-10 by the ipomarket.in Editorial Team.