India’s equity markets are set to witness a surge in IPO activity in 2025, driven by a combination of strong investor sentiment, regulatory reforms, and a maturing startup ecosystem. Suresh Malhotra, Chief Investment Officer at Anand Rathi, anticipates a record-breaking year for new listings across technology, financial services, and consumer sectors.
“After a relatively subdued IPO market in 2024, we expect a significant revival in 2025,” says Malhotra. “India’s capital markets are positioned to support innovative companies seeking growth capital, particularly in segments like digital services, renewable energy, and fintech.” Malhotra highlights that the government’s focus on fostering entrepreneurship and ease of doing business has created a favorable environment for companies to access public markets.
The rise of technology-driven businesses and the rapid adoption of digital platforms are expected to be key catalysts. “Investors are increasingly seeking opportunities to participate in India’s digital growth story,” Malhotra notes. “IPOs provide a window to invest in companies at the forefront of technological disruption, especially in e-commerce, cloud services, and AI-powered financial services.”
However, Malhotra also cautions that investors must navigate risks such as market volatility, changing regulatory landscapes, and valuation pressures. “Due diligence and risk assessment are crucial, particularly in a high-growth environment,” he emphasizes. “At Anand Rathi, we prioritize helping our clients identify sound investment opportunities while managing potential risks.”
To capitalize on the IPO boom, Anand Rathi is ramping up its research coverage of upcoming listings and providing tailored guidance to investors seeking to build exposure to this dynamic segment. “We see 2025 as a year where investors can align their portfolios with India’s growth trajectory through carefully selected IPO investments,” says Malhotra.
As India’s economy continues to expand and diversify, the IPO market offers both seasoned and first-time investors a chance to participate in the country’s transformation. “With the right strategy and informed decision-making, 2025 could be a landmark year for IPO investors,” Malhotra concludes.