Indian IPO market remains robust amidst concerns over American tariffs

In the bustling world of Indian finance, August 2025 has proven to be a month of significant activity, with the Indian IPO market witnessing one of its busiest months yet. A total of 43 companies raised a staggering ₹17,252 crore, according to recent reports.

The spotlight this month has been on the Small and Medium Enterprises (SME) platform. So far in 2025, a total of 215 IPOs have been conducted, with 162 on the SME platform and 53 on the main board. Notably, August 2025 saw the highest number of SME IPOs so far this year, at 28 issues. The funds raised through SME exchanges increased by 6%, reaching ₹1,345 crore.

Last year, an impressive 141 out of 151 oversubscribed IPOs were SMEs, as per Kush Gupta, Director of SKG Investment & Advisory. This trend continues this year, with analysts predicting that the SME IPO bull run will continue for the next 18-24 months.

One standout SME IPO this month was Chatterbox Technologies, a subsidiary of QYOU Media, which conducted an IPO on the SME platform of the BSE Limited, becoming the first influencer marketing company listed there. The final Red Herring Prospectus was to be filed by the end of August, with listing dates to be determined later.

Many SMEs are tapping the IPO market because funding through traditional sources like banks and private equity is hard to secure, according to Bipin Bhanushali, President of Marwadi Chandarana Group. However, Bhanushali also notes that the SME board has relatively lighter compliance and disclosure norms compared to the main board, and receives faster clearances.

While many SME IPOs are niche, with high-growth potential and solid business models, there are also some deadwood companies that spoil SME platform offerings, according to Bipin Bhanushali. Despite this, the current trend, if sustained, can help the start-up ecosystem by enabling venture capital funds and private equity to quickly churn and redeploy investments, according to Shravan Shetty, Managing Director of Primus Partners.

Shetty believes the current bullish trend in the primary market will continue due to renewed interest from retail investors and Foreign Portfolio Investors (FPIs). If this continues, it could bode well for the Indian economy, providing much-needed capital for businesses and helping to drive growth and innovation.

Elsewhere in the economy, the textile exporters have gotten relief as the DGFT has extended the Export Oriented Unit (EOU) period and waived cotton duty till December 2025, offering a much-needed boost to the sector.

As we move into the final months of 2025, the Indian IPO market, particularly the SME platform, looks set to continue its strong performance. The pipeline of IPOs remains robust, with several companies such as Groww, Tata Capital, Zepto, PhonePe, Hero FinCorp, and FabIndia waiting to go public. With the current trend showing no signs of slowing down, it seems that the Indian IPO market is set for an exciting end to the year.