IPO Market Analysis: Mainboard Listings Slow as SME Segment Thrives
India’s mainboard IPO market witnessed a sharp decline in investor returns during the first nine months of 2025, with listing gains nearly halving despite record fundraising. The average debut return plummeted to 11.44% from 31.07% a year earlier, while grey market premiums collapsed to just 10.8% of issue prices.
Key Takeaways
- 65 mainboard IPOs raised ₹80,904 crore, up 26.4% year-on-year
- Average listing gains fell sharply to 11.44% from 31.07%
- GMP premiums halved to 10.8% amid expensive valuations
- SME segment showed remarkable strength with 183 listings
According to IPOCentral data, the median post-issue P/E multiple edged up to 33.33x from 33x last year, indicating slightly higher pricing by promoters and bankers. This marginal increase significantly dampened investor enthusiasm, with the number of IPOs closing in the red nearly doubling from 11 to 19.
The informal grey market also proved less accurate, with the gap between GMP-implied and actual listing prices widening to 2.8% from 1.9% last year, suggesting most IPOs delivered subdued listings below expectations.
SME IPO Market Shows Extraordinary Resilience
In stark contrast to the mainboard slowdown, India’s SME IPO segment demonstrated robust health with 183 companies raising ₹8,620.5 crore between January and September 2025. The market showed balanced growth across NSE Emerge (91 IPOs) and BSE SME (92 IPOs), reflecting maturing infrastructure and strong enterprise confidence.
Strong Investor Participation
- Average issue size: ₹47 crore
- Average listing gain: 13.1% across all issues
- Record oversubscription: 105 times overall
- Segment breakdown: QIB (57x), HNI (198x), Retail (92x)
These figures highlight the widening investor base and growing credibility of SME listings as compelling investment opportunities.
Sectoral and Regional Distribution
The Capital Goods sector dominated SME listings with 43 IPOs, followed by Services (20), Construction (15), IT (14), and FMCG (14). This spread reflects India’s manufacturing revival and accelerating digitization among smaller enterprises.
Geographically, activity concentrated in five key states: Maharashtra (45 IPOs), Gujarat (40), New Delhi (20), West Bengal (20), and Uttar Pradesh (15). Together, these states accounted for 77% of total listings, reaffirming their status as India’s entrepreneurial powerhouses.
Global IPO Landscape
Internationally, the US IPO market maintained global leadership with fundraising reaching nearly $53 billion. Meanwhile, the London Stock Exchange witnessed a dramatic decline from its 2006 peak of $51 billion to just $248 million this year.
