Indian IPO Market (Jan–Apr 2025): A Review of Trends, Listings, and Market Sentiment

 

The IPO market in India saw active action in early 2025, with 26 firms listing in the first half of FY2025, raising a total of approximately Rs.51,365 crore — a steep 95% increase from the same period last year. The average listing gains increased to 34.28%, from 28.65% a year ago, indicating robust investor confidence.

 

IPO Listings (Jan–Apr 2025)

 

Here is a new summary of all IPOs that have been issued and listed during January to April 2025. The table has major information regarding the companies, industries, price, listing gains/losses, oversubscription, and current prices (as of April 2025).

 

 

Monthly IPO Statistics

 

Jan 2025: 

• Strong investor demand and an average listing gain of around 30% (excluding Capital Infra InvIT and Dr. Agarwal's Healthcare) were seen by most of the IPOs. Exceptionally high oversubscription of shares was witnessed, particularly in the case of Denta Water & Infra Solutions (221×) and Rikhav Securities (285×).

• Dr. Agarwal's Healthcare (~1.5×), and Capital Infra InvIT (~2.80x)which witnessed flat listing price and tepid subscription evidencing cautionary attitude.

Mar 2025: 

• Most of the IPOs were from  small cap space. Average listing returns were on the negative side (~–4%), with a few performing well like Desco (+50%) and Beezaasan (+47%).

Apr 2025: 

IPOs were listed with an average return of +3%. Shri Ahimsa (+23.5%) and Desco (+50%) recorded good performances against the poor showings of some others such as Infonative (–47%) and Retaggio (–15%).

 

Market Sentiment (Jan–Apr 2025)

 

• Jan 2025: The IPO market was upbeat for technology and industrial IPOs, with strong oversubscriptions and high first-day gains. Retail interest was strong.

• Feb 2025: IPO market was followed by poor investor interest and delicate retail sentiment, causing less-than-projected returns in March.

• Mar 2025:  Investors were risk-averse due to market volatility. Most smaller IPOs had difficulty subscribing, indicating caution and risk aversion in the market.

• Apr 2025: A hybrid month with very good performances of a few chosen sectors such as tea packaging, electrical infrastructure, while some encountered profit-booking and selling off.

 

Insights

 

During January to April 2025, the Indian stock markets saw a boom in IPO activity covering both mainboard and SME platforms. The performance was mixed across sectors, as some firms produced spectacular listing returns, while others struggled after listing.

 

•Rikhav Securities has emerged as the top performer of the year. It has managed to record huge HNI/QIB demand and earned double the amount on the first day for the listing.

•PDP Shipping has lagged on the basis of weak fundamentals and poor subscription.

•Industry such as Financial Services, infrastructure, Chemicals, FMCG has given positive returns owing to sound fundamentals whereas Logistics, Paper, Office Solutions industry has given negative returns.

•Overall, SME segments have recorded huge oversubscription and listing gains.

 

Outlook for Upcoming IPOs

 

The May–Jul 2025 IPO pipeline is robust with blockbuster deals such as Ather Energy (electric vehicle manufacturer) expected to list towards the end of April, likely to be oversubscribed. The market mood is likely to be selective, with strong demand for quality, large-sized IPOs in industries such as technology, finance, and infrastructure, while smaller or niche issuances will likely have moderate acceptance.

 

Notable Companies Planning IPOs in 2025

 

Ather Energy: The EV manufacturer has floated an IPO in the range of Rs.304–321 per share, looking to raise approximately Rs.2,980 crore.

Urban Company: This home services startup has submitted a Rs.1,900 crore IPO that consists of a fresh issue of Rs.429 crore and an offer-for-sale component of Rs.1,471 crore by existing shareholders.

Reliance Jio: Big listing is anticipated by Reliance Jio, the telecommunications business of Reliance Industries, seeking a valuation of over $100 billion. It is likely to be India's largest IPO to date.

OfBusiness: Backed by SoftBank, OfBusiness is set to enter the public markets with its IPO debut later this year.

As the IPO market keeps changing, investors will continue to be picky, prioritizing high-growth industries with solid fundamentals and monitoring overall market trends like inflation and interest rates.

As the IPO market further develops, investors will tend to be choosy, concentrating on high-growth industries with good fundamentals, keeping a watch on general market forces like inflation and interest rates.

 

Frequently Asked Questions

 

What key elements should investors evaluate before investing in an IPO?

Experts recommend focusing on the company’s financial stability, potential for growth, and market position within its sector.

 

How should investors approach IPOs with high oversubscription rates?

While oversubscription indicates strong demand, it’s essential to look beyond the hype and thoroughly assess the company’s long-term prospects.

 

What is the optimal holding period for IPO stocks to see meaningful returns?

Holding IPO stocks for at least six months tends to offer better returns, but this strategy should adapt to market dynamics.

 

Are there specific sectors that attract IPO investors in 2025?

Sectors like electric vehicles (EVs) and ESG-focused businesses are gaining attention, but diversifying across industries remains a sound strategy.

 

What are the common mistakes investors should avoid when considering IPOs?

Common pitfalls include overpaying for overhyped IPOs, skipping thorough research, and ignoring post-listing volatility in favor of short-term gains.

 

Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.