D-Street's IPO boom is defying the market’s historical slump

India’s newest stocks are bucking a broader market selloff in the country, indicating there’s room for initial public offerings to continue their bull run.
The 23 stocks that debuted in India so far this year are up by an average of 15% from their offer prices, according to data compiled by Bloomberg. That compares with an more than 2% drop in the benchmark NSE Nifty 50 Index this year.

Last year’s strong rally in Indian shares has stumbled, with the Nifty 50 suffering its worst monthly losing run since 2001 amid concerns about slowing economic and earnings growth. Demand remains robust for new equity offerings though, with the securities regulator saying it’s currently processing more than 60 IPO applications.


“New listings will continue to emerge,” said Neha Agarwal, managing director and head of equity capital markets at Mumbai-based JM Financial Institutional Securities Ltd. “I don’t think you’re going to see a pullback on that because the domestic investors are very confident.”

Agarwal estimates initial share sales in India will raise $25 billion to $30 billion this year, beating 2024’s record total of almost $21 billion in proceeds. Funds raised by companies through the sale of shares directly to institutions will also be more than last year’s total, she added.

Not that IPO stocks are completely immune to the downturn in sentiment. Some of last year’s big listings have come under selling pressure in line with the broader market. The 53% surge in shares of food delivery and quick commerce firm Swiggy Ltd. in about five weeks following its November debut has nearly evaporated. Hyundai Motor India Ltd. shares have yet to trade above their IPO price since the company’s record $3.3 billion share sale in October.

Most of 2025’s listings have been small so far, with all but one raising less than $100 million. Larger upcoming sales include plans by South Korea’s LG Electronics Inc. to list its Indian unit, which may raise more than $1 billion. HDB Financial Services Ltd., a unit of India’s largest private-sector lender, eyes an IPO of up to $1.5 billion this year.

“What we see right now is there is a heavy equity pipeline,” said Kunal Vora, India strategist at BNP Paribas SA.

Demand for equity issuances including IPOs, placements and block trades is being partly driven by domestic mutual funds, which are seeing inflow of about $3 billion each month from mom-and-pop investors, Vora said. The trend will hold as long as the supply is adequately absorbed, he added.