India emerged as a $5.2 trillion equity market in 2025, raising around ₹1.76 trillion through IPOs during the year, according to a report by Uniqus Consultech and Indian Venture and Alternate Capital Association. The report highlights strong primary market activity, sustained domestic participation and steady capital flows across sectors as key drivers of growth.
Private capital activity strengthens
The report shows India’s private equity and venture capital ecosystem rebounded in 2025, recording 1,506 deals worth USD 36.8 billion, marking a three-year peak in both volumes and value. Deal flow was supported by a combination of large-ticket transactions and sustained activity across early and growth stages, reflecting improved investor confidence and stronger deployment conditions compared with 2024.
Sectoral concentration
India’s NIFTY 50 index is currently trading at a price-to-earnings multiple of ~22.60x, representing the blended valuation of the country’s largest listed companies based on free-float market capitalization. The multiple is significantly shaped by the index’s sectoral mix, with Financial Services comprising approximately 37% of the index weight, the report highlighted.
IPO markets remain active
Public markets complemented private capital momentum, with 112 IPOs raising a record USD 21.7 billion during the year. Large-cap issuances anchored fundraising activity and helped sustain investor participation across market cycles, reinforcing India’s position as an active primary market for issuers across sectors.
India mobilized approximately INR 14.14 trillion in 2025, with debt continuing to dominate the fundraising landscape at INR 9.51 trillion, substantially exceeding equity mobilization of INR 4.28 trillion.
Within the equity segment, Mainboard IPOs and Preferential Allotments were the major contributors, highlighting strong activity across both public and private capital-raising channels. Additionally, REITs and InvITs contributed a steady INR 0.34 trillion, the report added.
QIP and broader fundraising trends
The report noted that qualified institutional placement activity moderated from elevated levels seen in 2024 but remained strong in absolute terms, with 77 QIPs raising USD 14.4 billion. The trend reflected continued reliance on public markets for growth capital while also signalling greater selectivity among institutional investors.
Market Capitalisation
India’s current market capitalization stands at INR 477 trillion (USD 5.3 trillion), with over 5,900 listed companies across the mainboard and SME platforms. This represents a doubling of the market size from INR 229 trillion (USD 3.07 trillion) in July 2021, marking growth of over 100% in less than 5 years. Another trend to note is the declining concentration of large conglomerates in the overall market value. The share of the top 10 companies has fallen from 29% in 2021 to 22% in 2025, the report said.
DIIs and FIls
As of December 2025, FII holdings in NSE-listed companies stand at INR 78 trillion, while DIIs hold INR 88 trillion. This marks the continuous outperformance of DIIs over FIls in the Indian capital markets.
The report also added that FII ownership, which peaked at nearly 21% in 2020, has steadily declined to about 16.6%. In contrast, DII ownership has increased from around 13.6% to nearly 19% over the same period. This
growth has been driven primarily by mutual funds, whose share has risen from 7% to 11%, amounting to INR 52 trillion in NSE-listed companies as of December2025.
Another notable trend is that promoter shareholding has remained relatively stable, hovering around 50% from the start of this decade.
LIC continues to dominate the insurance segment, accounting for close to 70% of total insurance sector holdings, with an equity portfolio valued at around INR 17.5 trillion.
Outlook for 2026
SEBI has received around 200 draft offer documents, which collectively represent a proposed issue size of over INR 1.81 trillion (around USD 20 billion), out of which finance constitutes the biggest share of INR 32,293.
Looking ahead, the report expects capital flows to remain steady across consumer platforms, financial services, data centres and Al-led technologies.
Source: ET BFSI
