India's IPO Boom Driven by Local Investors and Resilience

Kampani’s observation about pricing power shifting to local investors marks a key structural shift in India’s capital markets. Recent IPOs in 2025, such as KRN Heat Exchange (94.96 percent), Interarch Building Products (75.17 percent), and Diffusion Engineering (67.2 percent), have delivered stellar returns—driven largely by domestic investor demand, not foreign institutional capital.

A decade ago, foreign investors were the primary drivers of IPO success. Today, India’s financial ecosystem has matured, with retail participation democratizing access and creating more stable, resilient IPO activity—even amid global market volatility. 

Key Highlights

• India’s IPO surge is driven by retail investors, not foreign capital.
• 2025 IPOs deliver strong returns, validating long-term investor confidence.
• India’s IPO activity shows resilience despite global market uncertainty.

The pipeline remains strong with major offerings like Tata Capital’s $2B IPO and PhonePe’s $1.5B listing, built on confidence in homegrown capital. Research indicates Indian IPO sentiment is shaped more by economic indicators than political shifts, making it relatively insulated from election cycles and global disruptions. India’s momentum is unmatched—outpacing the US and Europe in deal count and IPO volume, second only to the Middle East. Despite global inflation and monetary policy uncertainty, firms like JM Financial maintain robust pipelines.

Also Read: India's Quick Commerce Market Shifts to Profit Focus

Kampani’s remark that “valuations may seem expensive in the short term, but returns are substantial over the long run” is backed by 2025 data. Strong first-day returns, especially in sectors like tech, financial services, and consumer retail, reflect long-term faith in India’s growth trajectory and a shift toward rewarding fundamental strength over short-term profits.