The Indian share market growth has had a mixed start in 2025. While the secondary market faces ups and downs, the primary market has seen its best-ever beginning to a year. Companies raised a record amount of funds in the first two months of 2025, setting a new high for IPO fundraising. While the secondary market struggles with volatility and heavy FII sell-offs, the primary market is making records!
The share market is truly witnessing a sharp contrast between the primary and secondary markets.
In the first two months of 2025, nine mainboard IPOs raised ₹15,723 crore, while 40 SME IPOs secured nearly ₹1,804 crore.
Share Market Growth Trends: 2025 Highlights
- The primary market records a best-ever start with ₹17,500 crore raised in two months.
- Nine mainboard IPOs raised ₹15,723 crore, while 40 SME IPOs secured ₹1,804 crore.
- Primary market fundraising hits an all-time high despite secondary market volatility.
- FII inflows are strong in IPOs, with $825 million invested in February and $449 million in January.
- FIIs continue heavy selling in secondary markets, offloading $4 billion in February and $9 billion in January.
- Hexaware Technologies led IPO fundraising, raising ₹8,750 crore in early 2025.
- Retail investor participation in IPOs remains low, while institutional investors dominate.
- SME IPOs struggle post-listing, with 28 out of 40 trading below the issue price.
- IPO activity is expected to slow down as global market volatility persists.
- Experts cite geopolitical tensions and market corrections as reasons for aggressive IPO fundraising.
This trend raises key questions for investors: Will the momentum in the primary market continue, or is it a temporary phase amidst global uncertainties?
Let’s take a look!
List of IPOs in Early 2025
Between January and February 2025, nine big companies (mainboard IPOs) launched their Initial Public Offerings (IPOs), collecting a total of Rs 15,723 crore. Additionally, 40 smaller companies (SME IPOs) entered the stock market, raising nearly Rs 1,804 crore.
Comparing this with previous years:
- In 2024, 16 mainboard IPOs raised Rs 10,763 crore, while 34 SME IPOs raised Rs 1,140 crore.
- In 2023, there were no mainboard IPOs in the first two months, and only 21 SME IPOs raised Rs 340 crore.
This surge in IPOs is mainly due to strong interest from Foreign Institutional Investors (FIIs), even though the overall stock market types have been unstable.
Know the difference between FPI and FII
Foreign Institutional Investors (FIIs) Drive IPO Boom
Despite market fluctuations, FIIs have actively invested in IPOs:
- February 2025: FIIs invested nearly $825 million in IPOs.
- January 2025: They invested around $449 million.
However, FIIs have been selling off their holdings in the secondary market:
- February 2025: They sold shares worth nearly $4 billion.
- January 2025: They offloaded over $9 billion worth of shares.
Expert Insights: Why Are IPOs Thriving?
Market experts say the strong IPO performance is driven by:
- Popular IPOs like Hexaware Technologies and Dr. Agarwal’s Health Care kept investors interested.
- The company strategises to secure funds early, fearing that market conditions might worsen.
- Rising competition and geopolitical tensions are pushing companies to strengthen their financial position.
List of IPOs in 2025 So Far
In the primary market’s mainboard IPO segment, the top IPOs were:
- Hexaware Technologies – Rs 8,750 crore
- Dr. Agarwal’s Health Care Ltd – Rs 3,027 crore
- Ajax Engineering – Rs 1,268 crore
- Other IPOs included Quality Power Electrical Equipments, Laxmi Dental, Quadrant FutureTek, Indo Farm Equipment, and Standard Glass Lining Technology.
However, six of these companies are now trading below their issue price, while others have only slightly increased in value.
Performance of SME IPOs
Among SME IPOs, the biggest ones were:
- Capital Numbers Infotech – Rs 169 crore
- Chandan Healthcare – Rs 107 crore
- Solarium Green Energy & Tejas Cargo India – Rs 103 crore each
- Other IPOs included Rikhav Securities Ltd, EMA Partners India, Ken Enterprises, and more.
Out of the 40 SME IPOs:
- 28 are trading below their issue price
- 4 are at the same price as their issue price
- 8 are trading slightly higher than their issue price
Looking Ahead
While IPOs have had a great start in 2025, experts warn that this trend may slow down in the coming months. With global market uncertainty and continued selling pressure in the secondary market, companies may delay their IPO plans.
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For now, the primary market remains strong, even as the secondary market faces challenges. Investors should stay cautious and carefully analyse IPOs before making investment decisions.
Source: MoneyControl
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