From record IPOs to mutual fund boom: Small-town impact & other key trends shaping Indian financial markets

Sebi’s annual report for 2024-25 reveals a landmark year for Indian financial markets. IPO fundraising exploded to a record Rs 1.7 lakh crore across 320 companies, cementing India’s global leadership in public offerings. Simultaneously, mutual fund democratisation accelerated with tier III cities, driving investor growth to 5.4 crore unique participants. Small-ticket SIPs under Rs.500 doubled, while trading volumes surged across segments. The data underscores India’s financial market maturation and expanding retail participation beyond traditional metro centres.

Buoyant IPO market

Indian corporates raised a record quantum of capital through equity issuances, registering the highest ever annual resource mobilisation

Unit holding pattern of mutual funds Mutual funds saw addition of

5.7 crore

folios, bringing the total number of investor folios to 23.5 crore.

Annual returns in major indices

During 2024-25, Indian equity markets exhibited a tale of two halves. The first half saw significant gains followed by consolidation and corrections. Equity indices also saw mixed trends.

Unique investors in mutual funds

Tier III cities accounted for the largest share, growing from 2.6 crore to 3.3 crore, indicating deepening penetration of mutual funds beyond metro and urban centres.

India topped the chart in global rankings by IPO volume, says EY’s Global IPO Trends 2024 report

Distribution of SIP folios

The number of SIP folios with a ticket size of less than Rs.500 saw the biggest jump in 2024-2025.