India’s IPO Market Shines Bright in Q1 2025, Defying Global Headwinds

Amidst the economic uncertainties prevailing across the globe, India's IPO market is a beacon of strength and opportunity. India captured a tremendous 22% share of global IPO activity during Q1 2025, according to EY's Q1 2025 IPO Trends Report, firmly establishing itself as one of the top destinations for companies looking to go public.

In just the quarter of 2025, there were 62 IPOs released, which in aggregate raised a sum of USD 2.8 billion. These figures are proofs of the resilience and adaptability of India's capital markets, especially when global investor sentiment is still subdued.

A Billion-Dollar Indication of Strength

A highlight of the quarter was the USD 1 billion listing of Hexaware Technologies Ltd. through an IPO, which made headlines and reaffirmed India's technology-driven enterprise appetite. Besides boosting market confidence, this blockbuster listing also highlighted a trend that is gathering momentum: investors are increasingly supporting businesses with forward-looking, digital-first models.

However, even with this upbeat momentum, the report does not hesitate to report a 20% fall in IPO activity over the same period last year. This fall is an indication of the cautious behavior that investors are adopting at present, particularly considering the 1.1% fall in the BSE SENSEX. But instead of being a sign of weakness, this moderation could be a sign of a maturing and more discerning market in its investment choices.

Sector Diversity: A Growing Strength

One of the most interesting facts about India's Q1 IPO environment was the diversity of participation. From the industrials and real estate spaces to hospitality, construction, and health sciences, every sector, including healthcare, was represented on public offerings in some way. Healthcare, more than any sector, has observed a dramatic spike in IPO enthusiasm, which leads us to speculate that investors are paying attention to longer-term structural forces in the economy.

Such inter-sectoral presence reflects the resilience of the Indian economy and the fact that it has something for all kinds of investors, irrespective of whether they seek stable and conventional businesses or high-growth prospects.

What's Brewing: IPOs on the Horizon – boAt and OYO

In the coming times, two much-awaited IPOs have market participants abuzz- boAt and OYO.

• boAt, the mass wearable and audio brand, should be able to lure young, tech-conscious investors with its rich brand following and growth narrative in the consumer electronics sector.

• OYO, the hospitality disruptor, is listing with improved profitability and plans to expand globally, making it a high-reward opportunity for those investors who focus on the travel-tech segment.

These IPOs are not just about financial gains; they represent the new-age India Inc. that's creating ripples across the globe.

Peculiarly, EY's report also underlined an uptick in mergers and acquisitions, with Q1 2025 recording record volumes of deals. This simultaneous growth in both private and public deal-making reflects a mature and dynamic financial landscape, one where firms have multiple avenues to scale, grow, and raise capital.

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An old hand at investing or new to the arena, the pickings in the IPO market of India have never been better, particularly with some of the bigger players like OYO and boAt joining the fray.

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