India's IPO market has witnessed a dramatic transformation over the past five years, with average mainboard offering sizes surging significantly, according to a comprehensive report by Pantomath Group. This growth reflects a structural shift in the country's capital markets and demonstrates increasing confidence among companies in accessing public funding.

Mainboard IPO Growth Accelerates

The data reveals a substantial increase in average IPO sizes across the mainboard segment. The following table illustrates this remarkable growth trajectory:

This increase represents a clear step-change from the pre-2020 era and signals stronger reliance on public markets by Indian companies to raise growth capital. The expansion in deal sizes indicates deeper investor confidence and a maturing equity ecosystem that can absorb larger offerings.

SME Segment Shows Remarkable Expansion

The small and medium enterprises segment has demonstrated even more impressive growth rates. SME IPO sizes more than doubled during the same period, pointing to deeper capital absorption and widening investor participation across market segments.

Record-Breaking 2025 Performance

The year 2025 emerged as a watershed period for Indian capital markets, with unprecedented activity across both mainboard and SME segments. The comprehensive IPO landscape for 2025 included:

This massive capital mobilization underscores both the scale and breadth of capital formation in the country's primary markets, establishing 2025 as a landmark year for Indian equity markets.

Global Leadership Position

India's IPO performance has positioned the country as a global leader in equity issuance activity. The nation achieved first place worldwide by number of IPOs, accounting for nearly one-fifth of global IPO volumes. This performance placed India ahead of major markets including the United States, Greater China, Europe, and ASEAN in terms of total issues launched.

In terms of capital raised, India secured fourth position globally, contributing approximately 11% of total global IPO funds. While this ranking reflects fewer large transactions compared to markets like the United States and certain Asian economies, the report emphasizes that this divergence represents structural differences rather than market weakness.

Market Characteristics and Outlook

India's IPO market distinguishes itself through broad-based participation across size segments. The combination of high-frequency small and mid-sized offerings, complemented by select large issuances, has created a unique blend of scale, consistency, and diversity. This approach differentiates India from more episodic or concentrated global markets and reinforces its standing as the world's most active IPO ecosystem.

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.