If the Indian capital markets in 2025 proved anything, it was that size does not always equal immediate alpha. The year was defined by a parade of heavyweights that absorbed record amounts of liquidity, yet the listing day fireworks were often found elsewhere.
While the headline numbers were dominated by five massive issuances (namely HDB Financial Services, LG Electronics India, Hexaware Technologies, Meesho, and Ather Energy), the strategic narrative of the year was one of discernment. Investors moved past the euphoria of previous cycles to demand fundamental clarity, rewarding it handsomely in some corners while punishing exuberance in others.
Also read: India’s IPO Boom Signals Record Year for Equity Markets
The heavyweight champion of the year was undoubtedly HDB Financial Services. Raising approximately ₹12,500 crore in July, the listing was a pivotal moment for the shadow banking sector. The issue was less about a speculative pop and more about a quality benchmark, delivering a steady but modest 13 percent gain on debut. It signaled that the market had the depth to absorb massive paper without blinking, even if it did not offer the lottery-ticket returns retail investors often chase.
Following closely was LG Electronics India, which raised ₹11,607 crore in October. Unlike its financial peer, LG defied the trend of sluggish mega-cap listings. It stunned the street with a 48 percent debut gain, proving that a household brand with tangible manufacturing assets and profitability could still command a scarcity premium.
Hexaware Technologies marked the year’s early test of appetite for IT services, raising ₹8,750 crore in February. Its muted 3 percent listing gain set a sober tone for the sector, reflecting global macro headwinds and caution around tech valuations. Later in the year, the new-age tech torch was carried by Meesho and Ather Energy. Meesho’s ₹5,400 crore offer in December tested the waters for e-commerce profitability, while Ather’s ₹3,100 crore issuance sought to capitalize on the EV transition. Both saw reasonable demand but lacked the frenzy of the 2021 tech boom, underscoring a maturation in how Indian investors evaluate cash burn versus growth.
Beyond these five giants, the broader market revealed a stark divergence. Even in a year marked by mixed listing outcomes, 2025 featured several bright success stories among mid-sized players. Standout performers included Stallion India Fluorochemicals, whose shares delivered a 40 percent return on listing, followed by Aditya Infotech Ltd with 60 percent listing gains, and Highway Infra Ltd, which topped the charts with a massive 72 percent pop.
These winners shared a common trait: they belonged to heavy-industry chemicals, electrical equipment, and infrastructure sectors. The data suggests that roughly 70 percent of mainboard IPOs that listed in the first half of the year were trading above their issue price by July. As of mid-year, 26 such IPOs showed that 18 were in the green post-listing, with 12 posting double-digit gains.
However, the year was not uniformly kind. The SME segment and smaller speculative IPOs faced a brutal reality check. Nearly 30 SME IPOs and 9 mainboard listings were trading below their issue price by August, with some plunging as much as 40 to 58 percent. The average listing-day gain across the board dropped drastically compared to previous years. By October, the average mainboard IPO listing gain had slid to just 9.1 percent. SME IPOs took a particularly hard hit, with average listing gains falling to nearly 10 percent, a steep drop from the 60 percent average seen the year prior.
This slump was driven by an oversupply of paper that stretched investor capital thin. With issues coming in rapid succession, demand from retail investors was diluted. Global macroeconomic headwinds and rising caution regarding valuations meant weaker follow-through demand in the secondary markets.
Ultimately, 2025 was a maturation year. It was a stress test that reaffirmed the depth of India’s capital markets, which ended the year as the fourth-largest globally for IPO fundraises with roughly US$14.2 billion raised. The market rewarded reasonably priced, fundamentally sound offerings while rejecting speculative plays. For companies, the lesson was clear: listing is no longer a guaranteed route to instant valuation. For investors, the shift was equally profound: IPOs are no longer lottery tickets, but equity investments requiring rigorous due diligence.
