The EY’s IPO trends report highlights a rise in mergers and acquisitions, indicating strong investor confidence.
Amid global uncertainties, India’s initial public offering (IPO) market has secured a 22 per cent share of global IPO activity in the first quarter of 2025, setting positive tone for the remainder of the year, according to EY’s latest IPO Trends report.
About 62 IPOs have raised $2.8 billion in Q1, the largest being Hexaware Technologies (which raised $1.0 billion) driven by ongoing demand for technology-based offerings in the market. The report added that the IPO market in 2025 appears promising.
Active sectors included industrials, real estate, hospitality & construction, and health & life sciences.
However, overall IPO activity in India declined by approximately 20 per cent compared to the previous year, reflecting a cautious investor sentiment as the BSE Sensex experienced a slight decrease of 1.1 per cent.
Prashant Singhal, Partner and Markets Leader, EY India, emphasised that the merger and acquisition (M&A) surge, driven by domestic and international interest, complements the IPO market. “Q1 2025 saw all-time high M&A deal volumes with transactions valued at billions of dollars, reflecting strong investor confidence and strategic investments,” Singhal added.
According to Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader, Indian member firm of EY Global, India’s IPO market continues to be a beacon of resilience and growth. “We are optimistic that this momentum will carry forward, driven by supportive policies and a dynamic economic environment, Ranka said.
However, the market has witnessed a bearish trend in recent times as the geopolitical situation and inflationary pressure have affected the investors sentiment. However, big names Jio, Zepto, and Greaves Electric Mobility are gearing up. Ather Energy IPO sets the tone for the mainboard as it concludes tomorrow, April 30.
Published on April 30, 2025
