The year 2025 is shaping up as a watershed moment for the Indian capital markets, with the initial public offering (IPO) route witnessing an unprecedented surge in activity. Companies across industries are tapping into the public markets, propelled by strong investor demand, regulatory tailwinds and favourable macroeconomic conditions. In this article, we unpack the IPO boom in India, highlight the key sectors dominating the primary market, and offer actionable insights for issuers and investors alike.

1. Why 2025 is a Breakout Year for Indian IPOs

Strong momentum in the primary market

India’s IPO ecosystem is witnessing a sharp uptick: according to KPMG’s FY 25 report, the Indian IPO market demonstrated increased participation and sectoral depth despite macro headwinds.
According to Goldman Sachs, IPO volumes in India reached about US$19 billion in 2024, with the expectation of further expansion in 2025. 

Why the surge?

• A pipeline of mature, growth-oriented companies now ready for public listing. 
• Strong domestic investor base and increasing retail participation, making the public market attractive. 
• Regulatory reforms and improved disclosures via Securities and Exchange Board of India (SEBI) that enhance investor confidence. 

What this means for companies and investors

For companies: The IPO window is open, and those with strong fundamentals, growth stories and transparent governance stand to benefit.
For investors: A wider choice of companies across sectors and stages, though the need for diligent due-diligence remains high given market vibrancy.

2. Key Sectors Leading the 2025 IPO Wave

Below are the sectors that are dominating the IPO pipeline in 2025, along with why they are at the forefront and what it means for market watchers.

Financial Services

The financial services sector (banking, NBFCs, fintech) is one of the major drivers of the IPO boom in India in 2025. According to one report, five financial-services IPOs alone raised ₹18,324 crore.
Investor interest is strong because:

• The sector is benefitting from digital adoption and regulatory changes.
• Many NBFCs and fintech firms are now IPO-ready, presenting scale and monetisation opportunities.
• Financial services tend to have robust cash-flows and capital-market visibility, which appeals to public-market investors.

Technology & Digital Businesses

Tech companies remain high on the IPO list. The KPMG report highlights that the information-technology sector topped listing-day gains (43 %) in FY25.
Key themes:

• Software, SaaS, cloud, digital platforms and fintech are benefiting from both domestic consumption and export demand.
• Investors are willing to back growth stories in tech even in primary markets.
• The digitisation wave in India continues to unlock opportunities for new-age businesses seeking to go public.

Industrials & Manufacturing

Industrial, manufacturing and capital goods sectors are coming strong in 2025. According to Forbes, capital-goods and industrial firms raised ₹11,422 crore in one segment of IPOs.
Why they are in spotlight:

• Government’s ‘Make in India’ push and infrastructure-capex stimulus is giving liftoff to manufacturing companies.
• Green manufacturing, EV components, renewable-equipment makers are part of this mix.
• Investors are seeking diversification beyond pure tech and services.

Healthcare & Pharma

Healthcare is another standout sector for IPOs in 2025. The EY-derived commentary noted that healthcare firms are increasingly participating in the primary market.
Drivers:

• Rising domestic demand for quality healthcare, diagnostics, pharma manufacturing and health-tech.
• India as a global pharma and life-sciences base is being leveraged by companies looking for scale and visibility.
• Investor appetite for healthcare businesses with sustainable growth and regulatory compliance is strong.

Consumer & Retail

The consumer/retail sector—with sub-segments like branded goods, quick commerce, lifestyle, e-commerce—is on the IPO radar. According to sector breakdowns, consumer services raised about ₹9,712 crore from seven IPOs.
Why:

• Rising urbanisation, digital shopping behaviour and brand consciousness.
• Retail and lifestyle companies having matured and seeking growth-capital via listing.
• Retail investor interest is often higher in consumer-facing businesses given easier narrative.

Emerging Areas: EVs & Renewables

Emerging sectors such as electric vehicles (EVs), green energy, sustainability-driven businesses are gaining attention in the IPO market. The Kotak Insights article indicates a shift toward EVs and ESG-focused IPOs.
Points of interest:

• With global ESG flows and domestic policy support, renewable energy companies are tapping the IPO route.
• EV component manufacturers, battery-storage firms and clean-tech companies; early listings may offer growth potential but also higher risk.

4. What Issuers & Investors Should Watch

For companies planning to go public:

• Ensure fundamentals: Profitability or credible path to profitability. The EY-derived data showed 90% of IPOs in Q1 CY25 were profitable at the time of listing. 
• Governance & disclosures: With SEBI tightening norms, transparent financials and clean corporate structure matter.
• Sector positioning: Being in a high-interest sector (tech, healthcare, manufacturing, EV) helps, but execution counts.
• Timing and valuation: Market sentiment can be fluid; companies should align with favourable windows rather than force listings.

For investors evaluating IPOs:

• Don’t just chase hype: Listing day gains may be strong, but long-term performance depends on business sustainability.
• Focus on sectors you understand: While emerging sectors are exciting (EVs, green energy), risk is often higher.
• Retail participation and oversubscription: With increased retail opening up IPOs, early investor appetite is high—evaluate whether valuations are realistic.
• Diversify: With so many sectors entering the IPO pipeline, spreading across sectors may reduce sector-specific risk.

5. Conclusion

The IPO boom in India in 2025 is more than just a short-term spike — it reflects deeper structural shifts: more companies mature, domestic investor base expands, and regulatory frameworks evolve. Across sectors — from financial services to technology, manufacturing to healthcare, consumer retail to clean-tech — the primary market is alive with opportunity.

For issuers, the message is clear: be ready with strong fundamentals, clean governance and a compelling growth story. For investors, this is a moment of both promise and caution: while the pickings are rich, the need for selective discipline is greater than ever.

With the right strategy and focus, stakeholders in the primary market can harness the potential of India’s IPO story in 2025.

Lal Ghai & Associates is pleased to bring you this sector-focused overview of India’s IPO landscape. For detailed IPO advisory, sector research or listing readiness support, feel free to get in touch.