Mainboard IPOs make a strong comeback in May, signaling new strength in Indian markets

Mumbai Mumbai: India’s capital markets witnessed fresh momentum in May 2025, with the mainboard IPO segment bouncing back after a two-month pause, NSE’s Market Pulse data showed on Friday. Driven by improving macroeconomic conditions and strong investor participation, this revival reflects the resilience of Indian markets amid global uncertainties.

May saw three mainboard IPOs launch, which collectively raised over Rs 5,600 crore. According to the report, the average size of each public issue was around Rs 1,750 crore.

Interestingly, all the IPOs came from the consumer discretionary sector, a trend continuing from FY25, during which the sector contributed 40 per cent of the total capital raised through IPOs.

All three IPOs also made strong debuts on the stock market, adding over Rs 20,000 crore to the total market capitalisation.

Another notable change was in the nature of capital raised. Nearly 93 per cent of funds came through new issues, a significant jump from just 35 per cent in FY24.This shows that companies are now more focused on raising fresh capital rather than offering existing shares.

Investor interest remained strong, especially from institutional players. Qualified institutional buyers (QIBs) received 67 per cent of the allotment, while retail individual investors (RIIs) and non-institutional investors (NIIs) received 21 per cent and 12 per cent, respectively.The SME segment also continued its upward trend. Six new companies listed on the NSE Emerge platform in May.
The total market capitalisation of the SME segment crossed Rs 2 lakh crore, with Rs 12,000 crore added during the month alone. In terms of overall market fund raising, follow-on equity offerings declined to Rs 3,750 crore in May compared to Rs 49,000 crore in April. Meanwhile, the debt market remained active, with total issuances of Rs 1.3 lakh crore. Commercial papers (CPs) accounted for 54 per cent of this, while non-convertible debentures (NCDs) contributed the remaining 46 per cent.

The renewed market activity was supported by several macroeconomic tailwinds, including easing inflation, record surplus transfers by the RBI, and positive trade growth with major economies such as the UK, US, and EU. However, the report also cautioned that ongoing geopolitical tensions in West Asia could pose risks to market sentiment in the future.