India's IPO market is undergoing a significant geographic transformation, with participation expanding beyond traditional metropolitan centers to embrace non-metro cities across the country. According to the Primary Pulse 2025 report by Pantomath Capital, this shift represents a fundamental change in how capital markets operate, with rising demand from Gujarat and smaller cities shaping the next phase of growth in India's primary market ecosystem.

Gujarat Leads Non-Metro IPO Participation

Gujarat has established itself as the most prominent non-metro contributor to IPO demand, creating a robust cluster of investor activity across multiple cities. The state's participation spans both retail and HNI segments, demonstrating broad-based market engagement.

Mumbai Maintains Market Leadership

Despite the geographic diversification, Mumbai continues to anchor India's IPO market with substantial participation across all investor categories. The city's dominance reflects its established financial infrastructure and concentrated investor base.

Smaller Cities Exceed Market Expectations

The report highlights remarkable participation from smaller cities that have traditionally remained on the periphery of capital market activity. Bhilai's performance particularly stands out, ranking second nationally in retail applications with significant collection volumes.

Traditional metros like Delhi and Chennai have not emerged as clear leaders, with their participation rates trailing several smaller cities, particularly in the retail segment. This trend indicates a fundamental shift in IPO enthusiasm toward non-metropolitan regions.

Diversified Capital-Raising Ecosystem

India's capital markets have evolved beyond traditional IPO routes, developing a comprehensive ecosystem of fundraising mechanisms. Qualified Institutional Placements have become the most consistently utilized non-IPO avenue, demonstrating institutional confidence in the market.

Record-Breaking 2025 Performance and 2026 Outlook

India achieved unprecedented success in 2025, establishing itself as the global leader in IPO activity by volume. The country's capital markets demonstrated remarkable depth and resilience, attracting diverse participation across geographic regions.

Looking ahead to 2026, the report projects continued strength in India's capital markets, with expectations of facilitating close to ₹4 lakh crore of capital formation. While issuance volumes may moderate from 2025 levels, activity is expected to remain elevated, supported by sustained participation from non-metro cities and the mature capital-raising framework that has developed across the country.

India's Initial Public Offering (IPO) market has witnessed a remarkable surge, with investment bankers earning a record ₹4,113 crore in fees. This represents a significant increase from the ₹3,463 crore earned in the previous period, reflecting the robust growth in the country's primary market.

IPO Market Highlights

The surge in banker fees corresponds with a substantial increase in fundraising activities. Key highlights include:

• Total funds raised: ₹1.75 lakh crore
• Number of issues: Over 100

Period Comparison

To better illustrate the growth, here's a comparison of the IPO market performance:

Market Implications

The substantial increase in both the number of IPOs and the fees earned by investment bankers may indicate:

1. Growing investor appetite: The surge in IPO activity suggests strong investor interest in newly listed companies.
2. Economic optimism: The willingness of companies to go public may reflect positive sentiment about India's economic prospects.
3. Maturation of companies: The high number of IPOs could indicate that many private companies are reaching a stage where they're ready for public markets.

Conclusion

The record-breaking performance of India's IPO market underscores the country's growing economic strength and the increasing sophistication of its capital markets. As companies continue to seek public funding, this trend may set the stage for further growth in the future.