JP MORGAN ON INDIA’S MEGA-IPO SURGE: HERE'S HOW IT IS LIKELY TO TOP $23 BILLION IN 2025

India’s equity markets are shifting into a higher gear, with major investment bankers signalling that blockbuster public offerings are here to stay. According to JP Morgan, the country has already matched last year’s total with $21 billion in IPOs for 2025, and the final tally is expected to exceed $23 billion once ongoing issues, such as the Rs 10,000 crore offering from ICICI Prudential AMC, are completed.

JP Morgan’s head of equity capital markets, Abhinav Bharti, described this surge as India’s structural transformation. "Yearly issuance of $20 billion is the new normal for India. It is the new watermark and will become an annualised run rate from here on," he told PTI.

Tech-Driven Demand Reshaping The Pipeline

Bharti noted that digital-first companies are playing a growing role in fueling investor appetite. Today, nearly one-fifth of IPO demand stems from consumer technology and new-age businesses, and he expects that share to climb above 30 per cent in the next five years. He also revealed that around 20 startups with valuations in the hundreds of millions are getting ready to list, while four to five companies are working on offerings exceeding $1 billion, potentially raising up to $8 billion in total.

When asked about valuation concerns around new-age firms, Bharti stressed that many earlier challenges have been addressed. He added that some companies JP Morgan had advised in recent years are now trading at a premium, underscoring the market’s growing maturity.

Private Equity Exits Keep Issuances Elevated

Bharti highlighted that private equity funds, which often seek liquidity after a few years, will continue to be a key driver of hefty IPO volumes. Still, he acknowledged that private sector capex remains sluggish, contributing to muted fresh capital raising. Offer-for-sale transactions are dominating the market, and qualified institutional placements have dropped sharply.

The softer environment has weighed on the broader equity capital markets. Only $65 billion of total issuances are expected this year, compared to $72 billion in 2024. According to Bharti, the shortfall is largely due to a dramatic decline in QIPs, only $10 billion so far, including $3 billion from SBI, versus $22 billion last year.

Foreign Flows Expected To Rebound

JP Morgan expects international investors to return in force next year, supported by improving relative valuations and India’s appeal as a defensive play amid global enthusiasm for artificial intelligence.

Looking ahead, Nitin Maheshwari, the bank's co-head for investment banking, projected that India’s total market capitalisation could double to $ 10 trillion within five years, placing it third behind the US and China. He added that outbound M&A is gaining traction thanks to stronger corporate balance sheets, while inbound interest remains strongest from Japan and the Middle East, particularly in financial services.

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2025-12-09T12:43:21Z