- India raised a record 31.95 trillion (~$21.6B) from IPOs in 2025, led by mainboard issues (~94% of proceeds).
- Underwriting fees hit a record ~$417M as average fee rates rose to 1.86% from 1.67% in 2024, boosting banks pricing power.
- Axis Bank topped IPO advisory fees (~$34.3M) ahead of Kotak (~$32.7M), while IIFL and Motilal Oswal posted sharp jumps.
- Even with rising rates, India remains relatively low-fee for large issuers, and a strong IPO pipeline is expected to keep fees climbing.
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The Indian IPO market in 2025 has demonstrated both expansion and maturation—a rare combination. With companies raising ∼₹1.95 trillion via over 365 IPOs, the breadth and depth of capital formation have grown in ways not seen for years. Mainboard IPOs remained dominant (₹1.83 trillion, ~94%), underscoring that even with a growing number of SME listings, most capital is raised by larger issuers.
This surge in activity has allowed investment banks to reclaim pricing leverage. Average underwriting fees rose to 1.86% of deal size in 2025, up from 1.67% in 2024, surpassing Hong Kong’s average (~1.5%). The total underwriting fees ($417 million) reflect not just more IPOs, but less discounting and better terms—an inflection point after years of competitive pressure.
Bank-level dynamics show a competitive but possibly shifting leaderboard: Axis Bank led with ~$34.3 million, followed by Kotak (~$32.7 million); IIFL grew ~90%, while Motilal Oswal leapt ~396%—small- and mid-sized advisory banks are rising rapidly. Also, some large global banks saw declines or modest growth, such as ICICI Bank (-49%) and SBI, indicating that for large issuers, India’s fees are still comparatively modest at scale.
Strategically, three implications emerge: first, issuers are increasingly willing to pay for advisory, not just execution, as expectations for narrative building, post-listing liquidity, ownership transition grow. Second, with IPOs becoming a primary mode of exit for venture/private equity—rather than only trade sales or OFS—expect further deal flow from high-growth private firms. Third, a rising SME IPO market and diversified sector participation—from NBFCs to technology and healthcare—suggests capital markets are gaining in both depth and inclusivity.
However, open questions remain: will fee levels hold if macro-conditions weaken (e.g., rate hikes, foreign flow reversals)? Can regulatory adjustments maintain speed and ease-of-listing without compromising investor protection? Will the IPOs that raised capital in 2025 deliver consistent post-listing performance to sustain institutional and retail interest? Also, how will India compete globally for large issuers when its fee benchmarks still trail international hubs? These are central for sustaining the momentum.
Supporting Notes
- Indian companies raised ~₹1.95 trillion (~US$21.6 billion) via IPOs in 2025, surpassing 2024’s record of ~₹1.73 trillion.
- Underwriting fees in 2025 reached a record US$417 million, with average fees rising to 1.86% of deal size vs 1.67% in 2024.
- Comparison: Hong Kong’s average IPO underwriting fee is about 1.5%, lower than India’s current average.
- Axis Bank earned US$34.3 million in IPO advisory fees; Kotak Mahindra Bank US$32.7 million; IIFL’s fee income jumped approximately 90%; Motilal Oswal saw ~396% growth year-over-year.
- Mainboard IPOs accounted for nearly 94% of total capital raised, with 106 mainboard and ~270 SME issues contributing to the total of ~₹1.95 trillion.
- Sectors leading fundraising in 2025 included NBFCs (~26.6%), followed by capital goods, technology, healthcare, and consumer durables; sectors like utilities and private banking saw no IPO activity.
- Average oversubscription rates have been high: ~26.6x over the past two years; SME IPOs often oversubscribed >100x.
- Despite rising fees, on a global scale India’s fees remain relatively low for large issuers; analysts expect further fee rate increases with more standardized large-scale IPOs.