Tea Post Files Draft Papers for IPO...
14 Jun, 2025
India’s IPO market is set for a dynamic year in 2025, with environmental, social, and governance (ESG) factors, technology, and fintech emerging as the key trends shaping investor sentiment and company strategies.
ESG considerations are increasingly influencing IPO investments in India. Sectors like renewable energy, green tech, and sustainable infrastructure are drawing heightened attention, thanks to government initiatives targeting 500 GW of non-fossil fuel capacity by 2030. Companies in power and utilities are transforming their operations to align with ESG principles, aiming to attract environmentally conscious investors. The rise of ESG-certified real estate investment trusts (REITs), such as PropShare Titania in Mumbai, further highlights this trend. According to a 2024 EY India survey, 60% of Indian investors now factor ESG into their IPO decisions, reflecting a broader shift toward responsible investing.
The technology sector remains at the forefront of India’s IPO boom, fueled by the government’s Digital India strategy and the country’s thriving startup ecosystem. In 2024, 13 new-age tech companies—including Ola Electric, Swiggy, and FirstCry—went public, compared to just five in 2023. Investors are drawn to innovative, scalable, and profitable tech businesses, with sectors like enterprise tech, e-commerce, healthtech, and edtech seeing increased activity. Ola Electric’s ₹5,500 crore IPO in 2024, buoyed by India’s expanding EV market, exemplifies this momentum. Looking ahead, companies in SaaS, cloud computing, and artificial intelligence are expected to lead the next wave of tech listings.
India is now the world’s third-largest fintech market, boasting over 2,100 companies, two-thirds of which were established in the last five years. The sector’s rapid expansion is driven by the widespread adoption of digital payments, online lending, and wealth management services. The EY-FinTech Convergence Council projects the industry to reach $200 billion in revenue and $1 trillion in assets by 2030. Recent IPOs, such as MobiKwik’s ₹700 crore issue in December 2024, which debuted at a 58.5% premium, underscore investor appetite. Other fintech players like Moneyview are eyeing substantial IPOs in 2025, leveraging advancements in AI, machine learning, and blockchain to create innovative financial products.
The surge in Demat account openings has revolutionized India’s IPO market, making it more accessible for retail investors. The ease of opening Demat accounts through discount brokers and fintech platforms, coupled with the convenience of the ASBA facility for IPO applications, has democratized market participation. The Demat account base is expected to surpass 200 million in 2025, further boosting IPO demand.
While the outlook for India’s IPO market is optimistic, challenges remain. Regulatory changes, geopolitical uncertainties, and the risk of IPO underperformance are potential hurdles, particularly for fintech companies navigating evolving SEBI and RBI guidelines. Global economic conditions could also impact investor sentiment. However, the government’s focus on digital infrastructure, renewable energy, and financial inclusion provides a supportive backdrop for upcoming IPOs.
India’s IPO market in 2025 is poised for robust growth, with ESG, technology, and fintech sectors leading the charge. The combination of strong economic fundamentals, government initiatives, and a rapidly expanding retail investor base promises an exciting year ahead for both issuers and investors. As companies increasingly integrate sustainability and cutting-edge technology into their business models, the stage is set for a new era of responsible and innovative investing in India’s capital markets.
