Investors, entrepreneurs and companies now use India’s IPO market to get involved in the country’s growing economy. By 2025, the IPO market is expected to experience a dramatic change because investors are switching, technology is advancing, and sustainability is gaining popularity.
Interest in environmental, social, and governance (ESG), technology (tech), and financial technology (fintech) is on the rise among both retail and institutional investors. Because more people are opening Demat accounts and learning about finance, the number of people taking part in Indian IPOs is surging.
The blog explains the biggest transformations occurring in the upcoming IPO in India and looks at how ESG, technology and fintech are affecting the world of investing.
ESG: Focusing on Sustainable Investments
ESG factors are increasingly influencing investor choices within India’s IPO space. In 2025, future IPOs in sectors such as renewable energy, green tech, and sustainable infrastructure will command notable attention.
For example, companies in the power and utilities sector, which dominated the IPO boom in Q4 2023, are transforming their operations to those underpinned by ESG principles to attract environmentally concerned investors.
The Indian government’s initiative for renewable energy towards 500 GW of non-fossil fuel capacity in 2030 has boosted the interest in future IPOs from solar, wind, and hydrogen energy companies. Also, ESG-certified real estate investment trusts (REITs) like PropShare Titania, which consists of grade A+ office space in Mumbai, are gaining momentum. These properties, entirely leased out to Fortune 500 firms and multinationals, reflect the increasing demand for sustainable commercial real estate.
Retail investors, who are encouraged by a demat account, also prefer ESG-compliant businesses. According to a 2024 EY India survey, 60% of Indian investors take ESG considerations while considering IPOs, which reflects a wider trend of responsible investing.
As forthcoming IPOs later in 2025 increasingly incorporate ESG metrics into prospectuses, those firms that do not focus on sustainability will find it difficult to gain investor attention.
Tech: Propelling Innovation and Scale
The tech sector remains at the heart of India’s forthcoming IPO market, driven by India’s evolving startup landscape and the government’s Digital India strategy. Sectors like enterprise tech, e-commerce, healthtech, and edtech are seeing a rise in future IPOs, as companies hinge India’s digital ecosystem to expand operations and lure investors.
In 2024, 13 new-age tech companies, including Ola Electric, Swiggy, and FirstCry, were listed on Indian exchanges, a stark contrast to just 5 in 2023 and 3 in 2022.
Investors’ interest in unique, profit-making and rapidly expandable businesses drives the success of tech IPOs. As an example, homegrown EV maker Ola Electric managed to raise over ₹5,500 crore during its 2024 IPO thanks to the expanded EV market in India.
Furthermore, in 2025, some of the IPOs are expected to come from companies involved in SaaS, cloud computing and AI.
Now, several investors apply for IPOs faster by using the ASBA facility. Because technology companies are progressing and listing their shares, the 2025 IPO market will be very attractive for investors.
Fintech: Redefining Financial Access
India stands third in the world for fintech, with over 2,100 companies and more than two-thirds of these were created over the last five years. EY-FinTech Convergence Council projects Fintech to reach revenue of $200 billion and hold assets of $1 trillion by 2030.
The surging use of online payment, loans, and wealth management services is driving the upcoming IPO in financial technologies. For instance, MobiKwik raised ₹700 crore through its IPO in December 2024, with the company listed on the BSE at a premium of 58.5%.
Like other fintech companies, Moneyview, which manages assets worth ₹15,000 crore and brought in revenue of ₹1,012 crore in FY24, is eyeing an IPO worth $400 million or more in 2025.
Thanks to AI, machine learning and blockchain, fintech firms are creating products such as digital lending and neo-banking that please not only investors but also users.
Demat Accounts: Enabling Retail Investors
The sheer rise in Demat accounts revolutionised India’s IPO market and has made it retail-friendly. A Demat account is mandatory for subscribing to IPOs, as it stores electronic shares and allows hassle-free transactions.
The emergence of discount brokers and fintech platforms has made it easier to open and hold Demat accounts, allowing millions of new investors to participate in future IPOs.
The ASBA facility, facilitated by majority of net-banking platforms, enables investors to block money for IPO bids without real-time deductions, adding comfort. With interest in the upcoming IPO in 2025, the Demat account base is expected to surpass 200 million and increase market participation further.
Meeting Challenges and Taking Opportunities
Though the upcoming IPO market of India is full of promise, challenges like regulatory issues, geopolitics, and risks of IPO underperformance exist. Fintech players, especially, have to work through changing regulations imposed by SEBI and the RBI. Besides, global macroeconomic conditions also affect investor sentiment, and institutional investors may be sceptical. Nevertheless, opportunities far exceed challenges.
The government’s emphasis on digital infrastructure, renewable energy, and financial inclusion provides a favourable climate for ESG, tech, and fintech IPOs. The increasing population of retail investors, facilitated by the demat account, guarantees robust demand for future IPOs.
Additionally, growing synergy between AI and sustainability through business models raises the attraction of such offerings.
Conclusion: IPOs’ Brighter Future in India
India’s 2025 IPO market is poised to be an exciting landscape, with the lead role being played by ESG, technology, and fintech industries. The mounting rush of Demat account openings, together with strong economic growth and investor interest, is fueling exceptional participation in IPOs.
As businesses converge with sustainability objectives, harness advanced technologies, and connect with the digital economy, the upcoming IPO will provide varied opportunities for investors. By keeping themselves well-informed and utilising Demat accounts, investors can be well-positioned to take advantage of the groundbreaking trends that are reshaping India’s IPO scene.
Note to readers: This article is part of HT’s paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.
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