- India’s 2025 IPO boom is led by large NBFC and tech-platform listings, fueled by regulatory listing mandates and strong domestic investor demand.
- HDB Financial Services’ ₹12,500-crore IPO was ~16.7× oversubscribed overall (QIBs ~55× vs retail ~1.4×), underscoring institution-led momentum.
- Meesho’s ~$606 million IPO surged ~95% post-issue, highlighting appetite for high-growth digital models despite ongoing losses.
- Several mega-IPOs, including Tata Capital and HDB, are trading only slightly above issue price, signaling tighter valuation tolerance and macro/sector risk awareness.
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India’s IPO landscape in 2025 has entered a new phase where large-scale offerings—especially from NBFCs and technology-enabled platforms—are being backed by robust demand from both institutions and retail investors. Regulatory pressures, such as the requirement for “upper layer” NBFCs to list, have pushed major NBFCs like HDB Financial Services and Tata Capital into the market, catalysing supply.
HDB Financial Services’ IPO typifies the dual forces of supply and demand: a sizable ₹12,500-crore issue attracted bids nearly 17 times greater than supply, with QIBs driving the bulk of the oversubscriptions (55.5×), while retail investors subscribed only modestly above par (≈1.4×), reflecting differences in risk appetite and access.
In parallel, Meesho’s IPO demonstrates investor appetite for high-growth digital business models. The issue raised ~$606 million, was priced in the band of ₹105–111 per share, and saw its shares surge ~95% from the issue price within days, adding ~₹47,000 crore in market value. However, cashflow losses remain substantial, raising questions about valuation sustainability and free float liquidity.
Meanwhile, Tata Capital’s ₹15,512-crore IPO, though large and well-subscribed in its anchor round, has delivered very modest returns since listing, indicating that while demand is strong for access, pricing expectations may already price in much of anticipated growth. Institutional investors seem willing to take higher risk, but margin for error on earnings forecasts and valuation multiples is narrowing.
Strategically, this wave of IPOs signals India’s financial ecosystem maturing: deeper domestic capital pools, stronger governance in newer listings, and evolving sectoral leadership (e.g., tech, digital commerce, NBFCs). Still, macro risks—such as rising credit stress, competitive dynamics in ecommerce, and regulatory tightening—pose ongoing open questions for investors seeking long-term value.
Supporting Notes
- HDB Financial Services raised ₹12,500 crore in its IPO, with ₹2,500 crore via fresh equity and ₹10,000 crore via Offer-for-Sale (OFS) through HDFC Bank.
- HDB IPO’s overall oversubscription was ~16.69×; reserved quota for QIBs subscribed ~55.47×; retail portion ~1.41×.
- Anchor subscription for HDB was ₹3,369 crore ahead of IPO opening.
- Meesho IPO raised approximately ₹5,421 crore ($606 million); issue price of ₹111, listing at ~₹162.5, representing first-day jump of ~46% and ~95% gain since issue price; market value added ≈ ₹47,000 crore.
- In six months ending September 2025, Meesho reported revenue of ~₹55.78 billion (₹ inflows up ~23% vs FY24), a net merchandise value (NMV) of ~₹191.94 billion, 1.8B orders in fiscal 2025, losses widening to ₹4.33 billion.
- Tata Capital IPO size was ₹15,512 crore with fresh issue of ~₹6,846 crore and OFS of ~₹8,666 crore; anchor book raised ₹4,642 crore, oversubscribed ~5× in anchor portion.
- Tata Capital IPO subscribed ~1.95× overall; QIBs ~3.4×, NIIs ~2×, retail ~1.1× on final day.
- Boston Consulting Group found India delivered average annual TSR (total shareholder return) of ~15.2% over the past decade (2015-2025), outperforming major Asia-Pacific peers; growth driven also by margin expansion and valuation improvements.
- Meesho is positioned as India’s first major horizontal marketplace IPO, with core metrics including 234 million annual transacting users, over 706,000 sellers, and 50,000 active content creators.
- Despite strong listings, many large IPOs are trading only modestly above or near issue price: HDB up ~3%, Tata Capital up ~0.2%; LG Electronics India and similar deals delivered much smaller post-IPO returns.