2025 may push IPO totals near or above 2024's record: Amit Ramchandani

With mega IPOs from Lenskart and Groww ahead, India's record ₹1.6 trillion fundraising looks set to be topped, says Ramchandani

With large initial public offerings (IPOs) such as Lenskart and Groww set to launch, this year’s IPO mobilisation tally is set to cross last year’s record of ₹1.6 trillion, says Amit Ramchandani, managing director and chief executive officer of Motilal Oswal Investment Advisors. In an email interview with Samie Modak, he says a diversified pipeline and resilient domestic liquidity make the 2026 outlook equally buoyant. Edited excerpts: 

What factors are driving the revival in equity capital markets? 

The rebound since April stems from three factors. First, early-year geopolitical and macroeconomic concerns have moderated, supported by Reserve Bank of India repo rate cuts and tax revisions. Second, domestic liquidity remains strong, with mutual funds (MFs), insurers, alternative investment funds (AIFs), and family offices deploying robust inflows, cushioning against global capital flow volatility. Third, issuers are better prepared — reinforcing governance, disclosures, and investor engagement — which has improved marketing and book-building outcomes. 

Does secondary-market volatility challenge deal execution? 

Volatility narrows execution windows but doesn’t shut them. Despite foreign portfolio investors (FPIs) withdrawing over ₹1.5 trillion this year, the primary market remains robust. Large IPOs, like LG Electronics’ ₹11,600 crore issue drawing bids worth ₹4.4 trillion, underscore the market’s depth and liquidity.

 

Volatility can actually improve entry valuations and prioritise high-quality issuers. Banks must adapt with realistic price bands, agile primary-secondary mix, and proactive anchor engagement.

 

Quality issuers — those with strong governance, credible leadership, and exposure to resilient structural themes such as consumption, manufacturing, and infrastructure — continue to find generous demand.

 

Can 2025 surpass last year’s ₹1.6 trillion fundraising, and what about 2026? 

2025 has already raised over ₹1.3 trillion. Upcoming IPOs from Tata Capital, LG Electronics India, Lenskart, and Groww could push totals near or above 2024’s record. With over 200 draft red herring prospectus (DRHP) filings, a diversified pipeline, and resilient liquidity, 2026 also looks encouraging, assuming stable global conditions.

 

Why the surge in DRHP filings, and will all list? 

The momentum reflects a capital expenditure revival and promoters’ push to diversify ownership and institutionalise governance. About 75 companies have Securities and Exchange Board of India approval. Historically, roughly two-thirds of approved IPOs list within six to 12 months, led by companies with clear earnings visibility, profitability, and credible governance in manufacturing, consumption, and infrastructure.

 

Which sectors are likely to dominate next year? 

Financials, renewables, precision engineering, defence, select digital platforms, and consumer discretionary are expected to lead. These sectors combine earnings visibility, scalability, and alignment with long-term policy and consumption trends.

 

Are issuers becoming opportunistic as many IPOs fall below the issue price? 

Primary market valuations follow secondary trends. Some IPOs underperformed due to aggressive pricing amid volatility, but these are exceptions. The market has recalibrated: investors now demand narrower price bands and greater transparency. Companies with strong fundamentals, clear communication, and disciplined pricing continue to deliver steady after-listing performance.

 

Why are some large issuers scaling down valuations and issue size? 

Price discovery is now data-driven and rooted in fundamentals. Anchor investors conduct deeper due diligence, benchmarking valuations not just against peer multiples but also after-listing performance and return profiles. In volatile markets, investors seek a margin of safety, prompting rational pricing. Issuers focus on shareholder quality and sustainable aftermarket liquidity over sheer issue size, often raising further capital later.

 

What drives MF participation, and how are FPIs behaving? 

Domestic MFs, buoyed up by record systematic investment plan inflows, have become the backbone of IPOs. Their disciplined approach strengthens price discovery and stability. Several mid-tier MFs are taking concentrated anchor positions, often without relying on top-tier participants. FPIs, though net secondary-market sellers, have shown selective conviction, investing around $5 billion in IPOs and qualified institutional placements (QIPs) in the first nine months of 2025.

 

What explains Motilal Oswal Investment Banking’s success? 

Ranked no. 1 in IPOs, QIPs, and rights issues in the first half of 2025-26 with 39 transactions executed, the firm’s strength lies in deep investor reach — retail and broking clients of nearly 5 million, over 9,200 franchises, and strong aftermarket support bridging institutional and retail segments, including AIFs and family offices. 

Anchored & aggressive: The IPO edition

• Record alert: IPOs may top ₹1.6 trillion
• Next wave: 200+ filings for 2026
• Liquidity boost: Policy and domestic capital stoke revival
• Volatility edge: Favours high-quality issuers
• Hot sectors: Financials, renewables, defence, precision engineering, digital, consumer discretionary
• Anchored demand: MFs lead; FPIs selective
• Smart strategy: Shareholder quality over size
• Market muscle: Motilal Oswal leads with reach, aftermarket support