Indian primary market has raised around Rs 3.8 lakh crore through 701 IPOs over the last two years, significantly higher than the Rs 3.2 lakh crore raised between 2019 and 2023 through 629 IPOs, a new report said on Thursday. 

The numbers highlight how quickly the IPO market has expanded, both in size and breadth, driven by growing investor confidence in Indian equities, data compiled by Motilal Oswal showed. The report noted that 2025 has been another impressive year for the market. So far, more than 365 IPOs have raised about Rs 1.95 lakh crore, surpassing the previous record of Rs 1.90 lakh crore raised in 2024 through 336 IPOs.

The mainboard continued to dominate fundraising, contributing about 94 per cent of the total amount raised in 2025, almost unchanged from the previous year. Over the last two years, mainboard IPOs alone have raised nearly Rs 3.6 lakh crore from just 198 companies, showing that large issuances continue to attract strong demand.

At the same time, the SME segment has also remained very active in terms of the number of listings, the report said. The report highlighted that sector diversity has improved sharply. Unlike earlier years when IPOs were concentrated in a few emerging sectors, companies from a wide range of industries have tapped the market over the past 24 months.

In 2025, NBFCs emerged as the biggest contributors, followed by capital goods, technology, healthcare, and consumer durables. This was a clear shift from 2024, when automobiles, telecom, retail, and e-commerce dominated new listings.

Interestingly, some sectors that raised large amounts in 2024, such as telecom, utilities, and private banking, saw no IPO fundraising in 2025. This shift underlines how sector leadership in the IPO market keeps changing based on market conditions and investor preferences, as per the report.

Company age and size trends also stood out. The report said younger companies, those less than 20 years old, accounted for over half of the total IPO funds raised in the last two years. In terms of size, small-cap companies raised the largest share of funds, contributing more than 50 per cent of the total amount, even though only a handful of large companies accounted for a significant portion of the remaining capital.