Initial public offerings (IPOs) in India are projected to reach an annual valuation of $20 billion, becoming the “new normal” in the coming years, as stated by a prominent investment banker on Tuesday. The market has seen a surge in initial share sales this fiscal year, with issuances totaling $21 billion in 2025, matching last year’s figures. Analysts anticipate closing the year with over $23 billion, especially with significant offerings such as the ₹10,000 crore from ICICI Prudential Asset Management Company currently in progress, according to JP Morgan.
“Yearly issuance of $20 billion is the new normal for India. It is the new watermark and will become an annualized run rate from here on,” said Abhinav Bharti, head of equity capital markets at JP Morgan, during a press briefing.
Bharti noted that approximately 20% of current demand is driven by consumer technology and emerging businesses, a figure expected to exceed 30% in the next five years. He mentioned that at least 20 startups with valuations in the hundreds of millions in the private sector are actively preparing for IPOs. Among these, four to five companies are seeking to issue over $1 billion, collectively raising up to $8 billion, two of which are technology firms.
Addressing the issue of valuations for new-age companies, Bharti remarked that the Indian market has largely addressed earlier challenges, resulting in some recently advised issuances now trading at a premium. He highlighted that past investments from private equity funds, which typically aim for exits over a few years, will significantly influence ongoing high levels of IPO activity.
When questioned about the predominance of offers for sale by existing investors rather than new capital raising, Bharti recognized the sluggishness in private capital expenditure across the country. He also pointed out that qualified institutional placements (QIPs) have been notably low, contributing to a wider decline in overall equity capital market activity.
For 2025, Bharti estimated only $65 billion in overall issuances, down from $72 billion in the previous year. He attributed this decline primarily to the lack of QIPs, with only $10 billion issued compared to over $22 billion in 2024, including $3 billion from a State Bank of India offering.
Looking ahead, the investment bank predicts that foreign investment will return to Indian markets next year, noting improved valuations on a relative basis. India is also seen as a defensive option for investors seeking opportunities amid the artificial intelligence boom in developed markets.
Nitin Maheshwari, co-head of investment banking at JP Morgan, mentioned that the overall market capitalization in India is expected to double to $10 trillion within the next five years, positioning India as the third-largest market behind the United States and China.
From a mergers and acquisitions perspective, Maheshwari observed an uptick in outbound activity, bolstered by strong balance sheets with lower leverage and increased corporate confidence. He indicated that potential acquisition targets will likely be companies known to Indian entities.
Japan and the Middle East continue to show significant interest in India from an inbound investment perspective, especially in financial services, Maheshwari added.
Published on December 9, 2025
