 "IPO frenzy: 174 companies plan to raise ₹2.84-trn amid investor caution")
The Indian primary markets are gearing up for a fundraising spree, with 174 companies planning to raise ₹2.84 trillion through initial public offerings (IPOs) over the coming months, according to data from Prime Database.
Of these, 83 have received the green signal from the capital market regulator, the Securities and Exchange Board of India (Sebi), to raise nearly ₹1.21 trillion. Big-ticket names include Hero FinCorp, PhysicsWallah, Ecom Express, Avanse Financial Services, and Kent RO Systems.
Another 91 companies have filed draft prospectuses with Sebi, looking to raise a collective ₹1.63 trillion. Among them are Tata Capital, Lenskart, Indira IVF, and Fractal Analytics, spanning sectors from fintech and clean energy to healthcare and education.
Meanwhile, 53 companies have raised ₹74,520 crore via IPOs so far in 2025 (calendar year-to-date), including high-profile names like Urban Company, JSW Cement, NSDL, Ather Energy, and Dr Agarwal's Health Care, investor participation in these offers is telling a different story.
Analysts believe the flurry of IPOs is a result of strong liquidity, and companies looking to capitalise before any potential global or domestic slowdown. Besides, unmet investor appetite in the secondary markets, where the typical 10 to 15 per cent stock movements are largely absent, has also led to a temporary shift in investor strategy from secondary trades to IPO bets.
Cherry picking
According to Prashanth Tapse, senior VP (research) at Mehta Equities, the IPO market is seeing a clear trend where investors are cherry-picking offers, perhaps only backing one out of every four IPOs. This, he said, reflects IPO fatigue among investors.
That caution is rooted in experience. While over 40 of the 53 IPOs this year delivered positive listing day gains, the average return on listing has narrowed to around 13 per cent, compared to 25 to 30 per cent during the previous bull phases, shows data from Chittorgarh, an IPO tracking platform.
Urban Company, Quadrant Future Tek, Stallion India Fluorochemicals, and Ellenbarrie Industrial Gases, for instance, delivered solid listing day returns to their investors, Laxmi India Finance, Travel Food Services, Indiqube Spaces, and Mangal Electrical Industries experienced negative performance on their listing day. Urban Company recorded the highest listing day gain of 57 per cent, while Arisinfra Solutions caused investors to lose 21 per cent on the listing date.
Additionally, several stocks that debuted in 2025, including Gem Aromatics, Brigade Hotel Ventures, and Arisinfra Solutions, have slipped below their listing price, reinforcing concerns about sustainability and valuation.
Subscription numbers
Subscription numbers reflect the trend as well. Some recent IPOs like Highway Infrastructure, Indo Farm Equipment, and Denta Water & Infra Solutions saw robust oversubscription, others like Dr Agarwal's Health Care, Ather Energy, and Quality Power Electrical Equipments have just about scraped through.
| Company name | Subscription status |
| Highway Infrastructure | 316.6x |
| Indo Farm Equipment | 227.7x |
| Denta Water & Infra Solutions | 221.5x |
| Dr. Agarwal's Health Care | 1.5x |
| Ather Energy | 1.5x |
| Quality Power Electrical Equipments | 1.3x |
"Most investors, as we know, invest in IPOs for listing gains. Such investors invest on the basis of grey market premiums and should exit on listing day irrespective of positive or negative listing. Long term investors, of which there are a few, have become selective and are evaluating revenue visibility, sector dynamics and long-term growth potential before investing” said Pranav Haldea, Managing Director at Prime Database. "The days of every IPO flying off the shelf are behind us." From a strategy standpoint, Haldea suggests that investors looking at IPOs as long-term investments might consider allocating capital toward the primary market after due diligence and careful IPO evaluation.
With global uncertainties still looming, including oil prices, US Fed moves, and geopolitical risks, investor appetite, analysts said, may remain selective through the rest of the year.