Top trends expected in the Indian IPO landscape in 2025
IPOs. In a year that saw the global economy navigate economic and geopolitical uncertainties, India emerged as an attractive option for global and Indian investors. This was due to its strong economic fundamentals, increasing investment appetite from domestic retail investors and political stability.
Such tailwinds are expected to continue, and this year is expected to surpass 2024 in terms of the size and volume of mainboard IPOs in India. However, the following trends for mainboard IPOs are expected to emerge:
Domestic institutional and retail investors will play an increasingly important role during IPOs
As India’s growth percolates to the bottom of the pyramid, retail investors, with increasing disposable incomes and armed with tech that makes investing accessible, will play an essential role in accelerating the development of the Indian equity capital markets.
Retail investors will influence the performance of IPOs directly through the retail quota and by providing Indian asset managers and mutual funds with more dry powder. This increase in appetite from domestic investors will fuel the growth of the Indian markets in 2025 and beyond.
IPOs will take longer to execute while pricing windows will shorten
A busy IPO market will require companies to clearly articulate and substantiate their narratives and value propositions to attract investors at desired valuations. With fund managers pressed for time, companies seeking to go public based on market conditions may find it more challenging to capture their
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