The Indian IPO market had a robust start to 2025, with 29 stocks debuting in January. While SMEs led the charge, Fabtech Technologies Cleanrooms emerged as the biggest gainer, with a 288% rise in stock price.
The Indian primary market has shown remarkable resilience amid ongoing volatility in the secondary market, with 29 companies making their stock market debut in January. This surge in IPO listings has been fueled by strong retail investor interest and the continued dominance of SMEs in the IPO space.
Among the 29 new listings in January, 22 were from the SME (small and medium enterprises) segment, which continues to see strong subscription rates due to a significant shift in focus from foreign portfolio investors (FPIs) towards the IPO market. Retail investors have been keenly supportive, contributing to impressive demand for new listings despite challenging market conditions.
Notable IPO performers from the SME segment include companies like Kabra Jewels, Delta Autocorp, and Rikhav Securities. The mainline segment also saw strong participation, with listings from companies like Stallion India Fluorochemicals, Quadrant Future Tek, and Indo Farm Equipment.
Fabtech Technologies Cleanrooms stood out as the top performer among January’s IPOs, securing a remarkable subscription rate of 688 times, well above the industry average. The stock is currently trading at ₹330 per share, marking a gain of 288% from its issue price of ₹85.
Other top performers include Indobell Insulation, Sat Kartar Shopping, Akanksha Power, and Kabra Jewels, which have seen their stock prices surge by 36% to 172% compared to their respective IPO prices. However, not all IPOs were successful. Ten stocks are currently trading below their issue prices, with Citichem India emerging as the weakest performer, down 47% from its issue price of ₹70.
The IPO market in India continues to thrive, even in the face of global uncertainties. As per the Economic Survey of 2024-25, India now leads the world in IPO listings, contributing to 30% of global IPO activities in 2024, up from 17% in 2023. The increased enthusiasm for primary markets is reflective of India’s growing prominence in global resource mobilization, with ₹11.1 lakh crore raised from equity and debt markets from April to December 2024.
Furthermore, the survey notes that young investors under the age of 30 are playing an increasingly significant role in driving the equity boom. Between March 2018 and September 2024, the proportion of young investors surged from 23% to 40%.
The primary market’s continued success, led by SMEs and a wave of successful IPOs, underscores the confidence of Indian retail investors and their growing role in the country’s financial markets.
