In the last few years, India has witnessed a remarkable economic transformation driven by a set of “sunrise sectors”—industries growing at breakneck speed, attracting massive investments, and rapidly modernising under robust government policy support. Nowhere is this dynamism more vividly visible than in the ever-expanding IPO pipeline, where these sectors not only fuel investor enthusiasm but also underpin India’s vision to become a USD 5 trillion economy. In this analytical piece, we dissect top IPO growth sectors for the next three years, spotlighting their market drivers, policy catalysts, IPO tracks, and what makes them the most promising plays for the next decade.
EMS (Electronics Manufacturing Services) Industry
India’s EMS industry is at the heart of its “Make in India” ambition. With the EMS market surging to an estimated USD 61.85 billion in 2024 and projected to leap to USD 348.17 billion by 2031 (a staggering 27-34% CAGR), this sector’s momentum is rooted in swelling domestic demand, accelerating digital consumption, and supply chain recalibration through the China+1 strategy.
- Production Performance: Electronics output hit INR 14 lakh crore in FY2024, with expectations to nearly double by FY28. Exports are soaring—USD 29.12 billion in FY24 (up 23.6% YoY), propelled by smartphones (now India’s 4th-largest export).
- Investment & Jobs: Aggressive government backing via the PLI scheme (INR 1.61 lakh crore investment to date) has triggered production worth INR 14 lakh crore, created more than 11.5 lakh jobs, and driven exports exceeding USD 61.8 billion.
- Growth Drivers: Explosive demand in consumer electronics and EVs; 100% FDI; abundant skilled yet cost-competitive labour; push for localisation and R&D; fast adoption of automation and Industry 4.0.
- Regional Leaders: In the list of best-performing EMS IPOs, Tamil Nadu, Karnataka, UP, and Maharashtra are state-wise export champions.
Best-performing EMS IPOs
| IPO Name | Listing Date | Listing Returns (%) | Current Returns (%) |
|---|---|---|---|
| Syrma SGS Technology | 26/08/2022 | 41.14 | 245.45 |
| Kaynes Technology | 22/11/2022 | 17.54 | 860.82 |
| Avalon Technologies | 18/04/2023 | (8.72) | 88.77 |
| Epack Durable | 30/01/2024 | (9.74) | 57.74 |
| Dixon | 08/09/2017 | 63.7 | 4,644.0 |
Outlook: The list of best-performing EMS IPOs shows how India’s EMS sector, riding high on policy support, global capital, and manufacturing ecosystem upgrades, is on course to become a critical global hub by 2026, with a 7% share in the world EMS market.
Railway Infrastructure Upgradation
Indian Railways is undergoing its most ambitious transformation in history—financial outlays, technological leap, and network resilience define this sector’s sprint into the future.
- Investment Scale: Railway budget for FY 2025-26 hits INR 2.7 trillion (doubling in five years, ~14% CAGR). The 2031 vision commits INR 16.7 lakh crore towards stations, new tracks, high-speed rail, and dedicated freight corridors.
- Network Growth: In FY24, 5,200km of track were added; annual expansion targets now top 5,500km. Network electrification is near complete (54,000km).
- Station Modernisation: Over 1,300 stations under the “Amrit Bharat” scheme; 103 already upgraded with world-class facilities. Implementation of the EPC model is attracting over INR 30,000 crore in private opportunities.
- Flagship Projects: Mumbai-Ahmedabad Bullet Train (first phase operational by 2026), Vande Bharat (400 new high-speed trains by 2025), and a total 40,000km freight corridor expansion plan.
- Growth Drivers: Record government capex, swelling demand for freight and high-speed passenger traffic, private investment influx (PPP & EPC frameworks), and tech upgrades like ‘Kavach’ (automated protection) and AI-based scheduling.
List of top performing Railway & Infrastructure IPOs
| IPO Name | Listing Date | Listing Returns (%) | Current Returns (%) |
|---|---|---|---|
| IRCON International | 28/09/2018 | 12.57 | 278.11 |
| RITES | 02/07/2018 | 15.30 | 322.27 |
| RVNL | 11/04/2019 | 0.26 | 1,784.21 |
| IRFC | 29/01/2021 | (4.62) | 405.19 |
| RailTel | 26/02/2021 | 29.10 | 301.06 |
Outlook: list of top performing Railway & Infrastructure IPOs highlights that India’s rail sector is set for transformation, with unprecedented expansion, logistics efficiency, and the creation of a green, high-speed, and smart rail corridor—a legacy that will move India closer to infrastructure parity with developed economies.
Telecom Infrastructure
India’s telecom sector is one of the top IPO growth sectors for the next 3 to 5 years, once defined by connectivity gaps, now leads as an engine of digital transformation with government, corporates, and global investors all doubling down.
- Market Trajectory: The telecom industry, worth INR 4.44 lakh crore (USD 54 billion) in 2025, is expected to reach INR 6.96 lakh crore (USD 85 billion) by 2030 (9.4% CAGR).
- Network & Subscriber Boom: 1.2 billion users and 94.4 crore broadband subscribers by 2025; 100 crore smartphones by 2026—rural India drives much of this demand.
- 5G/6G Rollout: 4.7 lakh 5G base stations installed; 99.6% districts covered. Target to fiberise 80% of towers for high-speed internet.
- Policy Push: National Telecom Policy 2025 (NTP 2025) envisions doubling GDP contribution, universal 4G/5G, and 10 lakh new jobs annually. The Production Linked Incentive (PLI) boosts indigenous production and export.
- IPO Highlights: 2024-25 brings big-ticket IPOs—Reliance Jio’s proposed INR 40,000 crore mega-offer, SMEs like Rama Telecom and HP Telecom. Established giants include Airtel, Jio, Indus Towers, HFCL, and Tejas Networks.
List of Top Performing Telecom Infrastructure IPOs
| IPO Name | Listing Date | Listing Returns (%) | Current Returns (%) |
|---|---|---|---|
| Bharti Hexacom | 12/04/2024 | 42.68 | 215.77 |
| Railtel | 26/02/2021 | 29.10 | 301.06 |
| Tejas Networks | 27/06/2017 | 2.2 | 128.79 |
| Bondada Engineering | 30/07/2023 | 99.49 | 482.67 |
| SAR Televenture | 08/11/2023 | 100.45 | 289.09 |
| Kore Digital | 14/06/2023 | 6.08 | 56.11 |
Outlook: With sustained policy tailwinds, massive private and public investments, and an unrelenting focus on 5G/6G and rural broadband, the telecom infrastructure sector stands top IPO growth sectors.
4. Digital Infrastructure & AI
India’s digital proliferation has become foundational to its economic leap. The digital infrastructure and AI sector stood at ~USD 23 billion in 2025 (12% CAGR), while AI alone reached USD 8–10 billion and is projected to double by 2027. The country is attracting USD 5 billion/year in data centre investments, ranking third globally in new capacity additions.
- Growth Drivers:
- Soaring demand for 5G/6G connectivity, AI models, IoT, and cloud-based services.
- India’s 1.3 Cr+ strong AI talent pool and world-class startup innovation ecosystem.
- Increasing enterprise AI adoption across healthcare, BFSI, manufacturing, and retail.
- Competitive factors such as low-cost, renewable-powered data centres.
- Policy Push:
- IndiaAI Mission (INR 10,300 Cr), powering a sovereign AI compute grid and subsidised access for startups.
- PLI Schemes for AI hardware and data centres.
- 100% FDI and streamlined regulatory processes for digital infra projects.
- Government-funded Centres of Excellence for AI training and upskilling.
- IPO and Market Action:
- No true “pure-play” AI IPOs yet, but several digital infra and AI-enriched tech firms—Tata Elxsi, Persistent Systems, Happiest Minds, TCS, L&T Technology—remain strong market performers.
Outlook: With ongoing policy, FDI, and startup momentum, India is moving rapidly to become Asia’s next digital and AI innovation nerve centre, both as a domestic services powerhouse and a global solutions exporter.
List of IPOs working under the AI Ecosystem
| IPO Name | Listing Date | Listing Returns (%) | Current Returns (%) |
|---|---|---|---|
| Happiest Minds | 17/09/2020 | 123.46 | 263.25 |
| Affle | 08/07/2019 | 17.27 | 161.34 |
5. Renewable Energy
India’s renewable energy story in 2025 is marked by record capacity additions, government-backed investments, and a rapidly maturing corporate PPA market.
- Sector Size and Expansion:
- Installed renewable power capacity reached 220.1 GW (Mar 2025) with a target of 500 GW by 2030.
- Solar constitutes ~105GW (47% share), wind ~47GW; power generation up 24.4% YoY.
- Market value: USD 24–24.5 billion (2024), expected to hit USD 37–52 billion by 2030 (8–9% CAGR).
- Growth Catalysts:
- Q1 2025 alone saw USD 9.8 billion invested, with foreign direct investment (FDI) topping USD 20 billion since 2020.
- Technology advances—energy storage, smart grids, green hydrogen, and offshore wind—are redefining the landscape.
- Policy Pillars:
- Production-Linked Incentive (PLI) for solar manufacturing, INR 6,000 crore Green Energy Corridors, and “PM Surya Ghar” rooftop solar subsidy initiative.
- Transparent e-tendering for 50GW/year projects; ISTS transmission cost waivers.
- 100% FDI permitted via the automatic route.
- IPO & Market Listings:
- Major listings: NTPC Green Energy (INR 10,000 Cr), Premier Energies, Waaree Energies, Alpex Solar, Advait Energy.
List of Top Performing Renewable Energy IPOs:
| IPO Name | Listing Date | Listing Returns (%) | Current Returns (%) |
|---|---|---|---|
| Premier Energies | 03/09/2024 | 86.64 | 136.67 |
| Waaree Energies | 28/10/2024 | 55.62 | 109.85 |
| Alpex Solar | 15/02/2024 | 200.39 | 970.43 |
| Advait Energy | 28/09/2020 | 1.08 | 4,164.71 |
| Polycab India | 16/04/2019 | 21.71 | 1,145 |
Outlook: With India solidifying itself as the world’s fastest-growing renewable market, robust policy support and record IPO activity will keep drawing global capital and technological innovation in the years ahead.
6. Semiconductor & Electronics Assembly
Semiconductors and electronics assembly are at the heart of India’s advanced manufacturing ambitions, leveraging both scale and value-added innovation.
- Market Dynamics:
- Semiconductor market size: USD 54–55 billion in 2025, to reach USD 103–110 billion by 2030 (15% CAGR).
- Electronics assembly: ~USD 168 billion (2025); projected to double by 2028 (27% CAGR).
- India now assembles over 99% of its smartphones domestically.
- Growth Drivers:
- Explosive demand from IoT, EVs, AI, and telecom sectors.
- China+1 global supply chain shifts; robust local design and R&D capabilities.
- Major government incentives: USD 10B+ in PLI, ECMS, SPECS, and EMC schemes; 50% fab subsidies.
- Policy and Investment:
- India Semiconductor Mission (ISM) backs fab, display, and ATMP units (INR 76,000 Cr budget).
- Five new semiconductor units under construction in 2025, including HCL-Foxconn JV in UP.
- Skilling initiatives include Tier-2/3 Innovation and Design Hubs and partnerships with major state clusters (UP, Gujarat, Tamil Nadu).
- IPO Scene:
- No pure semiconductor IPO yet, but robust activity in EMS and lighter semi-focused firms (Kaynes, Syrma SGS, Dixon, Tata Elxsi, Moschip).
- Forthcoming listings are anticipated as the domestic ecosystem matures.
Outlook: With new foundries, strategic policy support, and a maturing talent pool, India could emerge as a key node in the global semiconductor value chain, capturing 10% market share by 2030.
7. Finance Sector: Capital Markets, Mutual Funds & Infrastructure
India’s Finance Sector in 2025 stands as a powerhouse of growth, digital innovation, and investment, contributing massively to the overall economic expansion and financial market vibrancy, much like the EMS industry.
1. Market Size and Growth Metrics
- Overall Market Size: India’s financial services market—including banking, NBFCs, mutual funds, and insurance—exceeded USD 5.7 trillion in 2025, with expectations to surpass USD 8.5 trillion by 2030.
- Mutual Funds (MF): Asset under Management (AUM) crossed INR 60.3 lakh crore, with SIP collections hitting INR 27,269 crore per month (a 2.5x growth vs. 2021). This rapid accumulation fuels stock market liquidity and investment flows significantly.
- Banking Sector: The combined loan book of public and private banks stands at around INR 180 lakh crore, growing annually at a 16-18% CAGR.
- Insurance: Total premium collection (~life + non-life) is approximately INR 10 lakh crore, with rising penetration to 4.2% in 2025.
- Demat Accounts: Digital investment culture is reflected in 16.5 crore demat accounts, up from 4.9 crore in 2020.
2. Key Growth Drivers
- Financial Inclusion: Initiatives like Jan Dhan Yojana, UPI, and digital banking have extended financial services deep into Tier-2/3 towns and rural regions.
- Digital Ecosystem & Payment Revolution: UPI transactions reached INR 118 lakh crore in FY 2024-25, growing at over 20% YoY.
- Shift in Household Wealth: Investors are reallocating savings from traditional instruments like fixed deposits and gold into equity-linked MF products and insurance, increasing market depth.
- Retail Investor Surge: Expanding demat account base and growing ETF/index fund investments reflect a maturing retail investment culture.
- Fintech Boom: Over 15,000 fintech startups operate in India (2025), cumulatively raising more than USD 80 billion (2020-25), powering digital lending, wealth management, and payments.
- Government Policy Support:
- Digital Public Infrastructure: Robust platforms such as UPI, ONDC, Aadhaar, and the Account Aggregator framework enable seamless financial inclusion and innovation.
- FDI and Compliance Simplification: Permission for 100% FDI in key sectors, including banking, insurance, and asset management, eases foreign capital inflow.
- Capital Markets Reforms: SEBI-backed initiatives simplify listing processes; GIFT City fosters international capital access and investor protections.
- Longevity Instruments: Pension reforms, green and sovereign bonds, and Bharat Bond ETFs facilitate deeper markets and stable long-term funding
List of Finance Sector IPOs
| IPO Name | Listing Date | Listing Returns (%) | Current Returns (%) |
|---|---|---|---|
| UTI AMC | 10/12/2020 | (14.04) | 140.58 |
| HDFC AMC | 08/06/2018 | 65.09 | 415.41 |
| Nippon Life India AMC | 11/06/2017 | 12.86 | 219.05 |
| KFin Technologies | 29/12/2022 | (0.44) | 201.00 |
| CAMS | 01/10/2020 | 13.95 | 196.25 |
Conclusion: IPO Crystal Gazing
Across digital infra, energy, semiconductors, and finance, India’s sunrise sectors are leading a historic wave of investment and innovation. Supported by bold government reform, global capital, and a thriving startup ecosystem, these top IPO growth sectors remain at the forefront of the IPO boom and are charting a course to transform India into an economic, technological, and sustainability leader by 2030.
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