India's 2025 IPO Gold Rush: A Staggering ₹2.58 Lakh Crore Wave is Coming

If you've been watching the Indian stock market, you know it's been an interesting ride. But what's coming next is shaping up to be a true blockbuster event. We're talking about a tidal wave of Initial Public Offerings (IPOs) set to hit the market in the second half of 2025, with companies lining up to raise an absolutely staggering ₹2.58 lakh crore. This isn't just business as usual; it's a signal of massive confidence in the Indian economy and investor appetite.

Key Highlights

• ✓ A massive ₹2.58 lakh crore worth of IPOs are in the pipeline for the second half of 2025.
• ✓ Major players like Tata Capital (₹17,200 crore) and LG Electronics (₹15,000 crore) are preparing to list.
• ✓ New-age unicorns including PhonePe, Meesho, Lenskart, and Groww are also joining the rush.
• ✓ The boom is fueled by strong investor demand, particularly from mutual funds and private equity exits.
• ✓ The first half of 2025 already saw 26 companies raise a hefty ₹52,200 crore from the market.

The Floodgates Are Opening: A Pipeline of Epic Proportions

Let's put that massive number into perspective. The pipeline of ₹2.58 lakh crore is broken down into two parts: about ₹1.15 lakh crore in offers have already gotten the green light from SEBI, while another ₹1.43 lakh crore are in the queue, waiting for regulatory approval. This rush follows a very strong first half of the year, where 26 companies successfully raised ₹52,200 crore, spearheaded by the impressive ₹12,500 crore issue from HDB Financial Services.

This momentum has been building for a while. If we look back at the calendar year 2024, the market saw 90 IPOs raise a total of ₹1.60 lakh crore. The second half of 2024 was particularly hot, with 56 companies mobilizing ₹1.30 lakh crore alone. What we're seeing now is not just a continuation but a significant acceleration of that trend. V Jayasankar, head of investment banking at Kotak Mahindra Capital, believes around 150 firms are planning to tap the market over the next 12 months, potentially raising over $30 billion.

💡 What's Interesting: According to Mihir Vora, the Chief Investment Officer at Trust Mutual Fund, a big part of this IPO boom is strategic. He says, "IPOs are picking up as many PE funds are nearing the end of their life cycle and need exits."

Meet the Headliners: From Tech Unicorns to Industry Giants

So, who exactly is joining this party? The list is a fascinating mix of established giants and disruptive new-age businesses that have become household names. On one hand, you have massive offers expected from companies like Tata Capital, with an estimated issue size of ₹17,200 crore, and the Indian unit of LG Electronics, which is looking to raise a cool ₹15,000 crore.

Then there’s the exciting lineup of startups and unicorns that many of us use every day. We're talking about fintech powerhouse PhonePe, e-commerce platform Meesho, and eyewear retailer Lenskart. The list doesn't stop there; it includes Boat, WeWork India, ed-tech firm Physics Wallah, and logistics-tech company Shadowfax. These offers are expected to be in the range of ₹1,500 crore to ₹9,000 crore each. Other familiar names like Pine Labs, Urban Company, Wakefit, and Shiprocket are also getting ready to make their stock market debut.

What's Fueling This IPO Frenzy?

You might be wondering what's causing this sudden, massive surge. It boils down to a perfect storm of factors. First and foremost, there's a deep-seated confidence among these companies that investor appetite is strong and resilient. According to Bhavesh Shah, MD at Equirus Capital, this growth is built on "growing investor participation, both retail and institutional." A huge piece of this puzzle is the role of mutual funds.

Here's the thing about mutual funds: they are flush with cash. Equity mutual fund assets have swelled by an incredible 22% in the year ending June 30, jumping from ₹26.82 lakh crore to ₹32.69 lakh crore. On top of that, Systematic Investment Plans (SIPs) are pouring about ₹27,000 crore into equity schemes every single month. With valuations in the secondary market looking a bit rich, fund managers are increasingly turning to IPOs as a prime spot to deploy this capital. It’s a classic case of supply meeting massive demand.

The other major driver, as Mihir Vora pointed out, is the wave of Private Equity (PE) exits. Many PE funds that invested in these startups years ago are now reaching the end of their investment cycles. For them, an IPO is the perfect opportunity to cash in on their successful bets, providing a healthy return to their own investors. This creates a powerful incentive for a whole generation of companies to go public.

The Big Picture and Potential Bumps in the Road

Experts believe this momentum is here to stay, at least for the near future. The underlying strength of India's economy is a key factor. As V Jayasankar from Kotak put it, "It’s a reflection of our large, fast-growing economy." Even with a conservative GDP growth of 6%+, the market creates significant opportunities for businesses to thrive and seek capital for expansion. Political stability and the market's resilience to external shocks further bolster this confidence.

However, it's always wise to keep an eye on potential headwinds. Jayasankar also noted a few things that could challenge the IPO momentum. A downturn in the secondary market could dampen spirits, as could a significant drop in domestic investment inflows. Another factor to watch is the flow of foreign capital; if investors shift their focus toward more attractively valued markets like China, it could slow things down. But for now, as Pranav Haldea of Prime Database suggests, the stage is set for a very strong finish to the year.

Conclusion

The bottom line is that India's primary market is gearing up for an unprecedented period of activity. The sheer scale of the ₹2.58 lakh crore IPO pipeline is a testament to the dynamism of the Indian economy. With a diverse mix of legacy giants like Tata and new-age disruptors like PhonePe and Meesho hitting the market, there's something for every kind of investor. Fueled by the immense power of mutual fund inflows and strategic PE exits, this IPO boom looks set to redefine the market landscape as we head into the rest of 2025.