Besides high demand for new investment opportunities, the market is on fire also because India’s growth over the past decade has birthed a strong pipeline of companies across diverse industries that have reached a certain scale and maturity, according to Abhinav Bharti, head of India equity capital markets at US investment banking giant JP Morgan.

“This is just the start of the trend, and we should see India to be a regular $20bn IPO market on an ongoing basis, if not higher,” Mr Bharti said on the company’s YouTube channel, external.

But while this wave of new share offerings signals a maturing of India’s investing landscape, the euphoria also demands caution, experts say.

“There’s a lot of exuberance. Investors need to be selective and study the financials of the companies they choose. They must not invest blindly,” says Kranthi Bathini of WealthMills Securities.

The IPO frenzy has hit a fever pitch even as Indian stock markets overall have delivered lacklustre returns to investors.

India’s benchmark Nifty-50 index of its largest and most liquid companies has clocked barely 6% this year, while returns from indices tracking small and mid-sized firms are negative.

Besides concerns about worsening global geopolitics and US President Donald Trump’s 50% tariffs on India, expensive share valuations have worried analysts.

But ironically, this could be contributing to the high interest in debuting companies.

“Investors currently see IPOs as a better place to make returns because of the chance of a 15-20% pop in the stock price on listing,” said Mr Jayasankar.

However estimates suggest that half of the IPOs that have debuted this year are trading below their listing price. Kotak’s own analysis shows that only 43 of the 79 companies that listed this year have given positive returns.

Mr Jayasankar says this could partly be because they were mis-priced (sold expensive) or because the overall market sentiment is low.

Also, the majority of the companies hitting the markets in the first nine months were smaller firms, which tend to be more volatile.

“The last quarter of the year tends to be skewed towards larger or better-quality companies hitting the market,” Mr Jayasankar said.