India Business Law Journal – October 2025

Boom time for IPOs

PE/VC firms view India’s bustling capital markets as ripe grounds for cashing out

This year has been marked by a staggering number of IPOs by Indian companies, making headlines at regular intervals. The momentum is strong enough for Indian markets to close this year on a high.

According to consulting firm EY, India made up a 22% share of global IPO activity in the first quarter of 2025. KPMG reports 80 mainboard IPOs this year, slightly above fiscal year 2024’s 76, with capital raised rising sharply to INR1.63 trillion (USD18 billion) from INR619 billion in the previous year. This contrasts with weaker global activity, where listings fell and USD119.1 billion was raised.

LG Electronics’ USD1.3 billion IPO, HDB Financial Services’ USD1.45 billion IPO and Tata Capital’s USD1.75 billion IPO – the largest in India in 2025 – reflect the strong performance of the IPO segment.

Given the high demand, private equity and venture capital firms have been using IPOs to exit portfolio companies and secure favourable returns. India has seen a sharp rise in such PE/VC-led exits, with values reaching USD33 billion in 2024 and continuing strongly into 2025.

Rushing for exits is our main feature this issue, where we speak to legal advisers who guide PE/VC firms about their experiences, including the challenges they face.

They state that in finalising shareholder agreements, the trend has moved from broad exit clauses to structured, enforceable and time-bound exit waterfalls. In facilitating exits, lawyers need to carry out exhaustive due diligence, with pending tax claims, foreign exchange compliance gaps and improperly executed contracts posing risks.

We turn to celebrating young legal achievers in the Future Legal Leaders 2026 report. After weeks of research and more than 2,000 nominations from clients, we reviewed many testimonials describing how lawyers provided invaluable support or resolved conflicts.

With growing experience, the career trajectory of these laser-focused, client-committed legal experts is worth reading. The nominations process lasted three weeks and culminated in a final review by the editorial team, with insights this time from members of IBLJ’s Editorial Board.

In our feature titled Where roads diverge, we move to the complexities in the real estate sector and the interplay between the Real Estate (Regulation and Development) Act, 2016 (RERA), and arbitration in real estate disputes. The article by former judge Rishabh Gandhi highlights the ongoing tension between the statutory consumer protection body and contractual autonomy, noting that while the RERA offers transparency and oversight, arbitration provides flexibility and privacy.

Recent landmark cases reinforce that statutory consumer rights under the RERA cannot be waived by arbitration clauses. The article advocates for clearer legislative and judicial guidance, closer co-operation between RERA authorities and arbitral tribunals, and clearer contractual drafting to prevent procedural disputes that consume time at RERA and arbitral forums. The article underscores the need for harmonisation to ensure efficient, predictable dispute resolution and greater stability in the real estate sector.

Our Legal Q&A section features brief interviews with experts across sectors. The first one discusses the recent AI market study released by the competition regulator and how algorithms could collude even without human intervention. The second one examines how the Insolvency and Bankruptcy Board of India and the Directorate of Enforcement (ED) are working on a mechanism through which assets seized by the ED can be returned to creditors following a court undertaking. The third one looks at the growing preference among Indian parties to conduct arbitrations at the Dubai International Arbitration Centre. Finally, the fourth Q&A looks at a recent Delhi High Court ruling that expands the definition of the workplace to include digital platforms such as WhatsApp and Facebook.

In Bridging jurisdictions: India and UK redefine arbitration, international disputes lawyer Alipak Banerjee writes on how India and the UK are reshaping their arbitration regimes and what the two jurisdictions can learn from each other.

The UK’s new Arbitration Act, 2025, updated its 1996 framework by clarifying the law governing arbitration agreements, introducing summary awards and formally recognising emergency arbitration.

India’s 2024 amendment bill mirrors some UK reforms, including emergency arbitration, but goes further with proposals that redefine the seat of arbitration, restrict courts’ interim powers and clarify when awards may be varied or set aside. The author warns that some proposals risk creating confusion or limiting essential court support.

Banerjee writes that the UK could adopt India’s clarity on independence and confidentiality, while India could draw from the UK’s approach to defining the seat, regulating third-party measures, modifying awards and supporting emergency arbitration.