By Mr. Abhay Ray 
Introduction
Fundraising by Indian companies through equity and debt reached an all-time high in the financial year 2024-25 (FY25), according to data collated by primedatabase.com. Fundraising through debt stood at ₹11.1 trillion in FY25, including contributions from InvITs (infrastructure investment trusts) and REITs (real estate investment trusts). Of this total, ₹ 11,04,331 crore was raised through private debt placements, while ₹8,044 crore was raised through the public bond issuances. However, the public bond market issuances saw a decline, with 44 issues raising ₹8,044 crore in the current financial year compared with 48 issues raising ₹20,787 crore in the previous financial year. The largest public bond issue during this period was from Motilal Oswal Financial Services, which raised ₹1,000 crore.
IPO Market Surges – FY25 Sees Record-Breaking Fundraising
The IPO market was particularly active, with 78 companies raising ₹1.62 lakh crore, significantly surpassing the ₹ 61,922 crore raised by 76 IPOs in the previous fiscal. The largest IPO of the year came from Hyundai Motor, raising ₹27,859 crore, followed by Swiggy (₹11,327 crore) and NTPC Green Energy (₹10,000 crore). Meanwhile, the smallest IPO was launched by Kronox Lab Sciences, amounting to ₹130 crore.
The sharp rise in IPO activity was fueled by strong investor confidence and a growing retail investor base. Increased participation from institutional investors and foreign portfolio investors (FPIs) further strengthened capital market activity. Fundraising through debt instruments also set new records, reaching ₹11,12,375 crore, primarily driven by ₹11,04,331 crore raised via private placements and ₹8,044 crore through public bond issuances.
The year also marked a revival for new-age technology companies (NATCs), which had seen subdued activity in previous years. Eight major IPOs, including Awfis, Blackbuck, Digit Insurance, Firstcry, Ixigo, Mobikwik, Swiggy and Unicommerce, collectively raised ₹21,438 crore. This was a significant improvement from the ₹3,040 crore raised in FY23 and ₹5,544 crore in FY22, indicating renewed investor interest in the sector.
Retail participation in IPOs witnessed substantial growth, with an average of 21.33 lakh applications per issue, a notable increase from 13.15 lakh in the previous fiscal. The highest retail engagement was recorded in the IPOs of Waaree Energies (70.13 lakh applications), followed by Bajaj Housing Finance (58.66 lakh applications) and KRN Heat Exchanger & Refrigeration (55.23 lakh applications).
Despite the rising number of retail participants, the total allocation to retail investors stood at ₹40,471 crore, accounting for 25 per cent of total IPO fundraising, slightly lower than 27 per cent in FY24. However, the total value of shares applied for by retail investors reached ₹3.29 lakh crore, representing a 103 per cent premium over the total IPO fundraising amount.IPO investors benefited from strong listing gains, with an average 30 per cent rise on listing day, slightly above the 29 per cent gain in FY24. Among the best-performing IPOs, Mamata Machinery saw a 159 per cent increase, followed by Bajaj Housing Finance (136 per cent) and KRN Heat Exchanger & Refrigeration (117 per cent). Out of the 78 IPOs launched in FY25, 46 continued to trade above their issue price, delivering an average return of 15 per cent, despite market corrections in the latter half of the year.
Foreign Portfolio Investors (FPIs) played a dominant role in IPO fundraising, subscribing to 32 per cent of the total IPO amount, while domestic mutual funds accounted for 22 per cent. Anchor investors collectively absorbed 35 per cent of the public issue amount, with FPIs taking up 16 per cent and mutual funds 13 per cent. While FPIs were highly active in the primary market, investing ₹1.21 lakh crore, they simultaneously offloaded ₹2.64 lakh crore in the secondary market, indicating a strategic shift in investment patterns.
FY26 IPO Pipeline Remains Robust Despite Sectoral Shift
The IPO pipeline for FY26 remains strong, with 49 companies approved by SEBI seeking to raise ₹84,000 crore, while 67 other companies await approval for ₹1,02,000 crore in fundraising. However, only four of these 116 companies belong to the new-age technology sector, reflecting a decline in tech-focused IPOs.
Despite a strong pipeline, market volatility has led to a more cautious approach among issuers. In an unusual development, no main board IPOs were launched in March 2025, marking the first instance since May 2023 that a full month passed without an IPO. Several companies have opted to delay their public offerings, preferring to wait for more stable market conditions rather than risk an underwhelming response.
Conclusion
FY25 marked a historic year for corporate fundraising in India, with record-high capital raised through both debt and equity despite market uncertainties. Debt fundraising reached ₹11.1 trillion, largely driven by private placements, while the IPO market saw an unprecedented surge, raising ₹1.62 lakh crore across 78 listings. Robust investor participation especially from retail investors and FPIs fueled this momentum, alongside strong listing gains and renewed interest in new-age tech companies. However, a noticeable shift in sentiment emerged late in the fiscal year, with increasing caution amid market volatility and a slowdown in tech IPO approvals. Looking ahead, FY26 shows promise with a healthy IPO pipeline of ₹1.86 lakh crore, but prevailing market conditions and sectoral shifts may influence the pace and nature of future offerings.
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