 "initial public offering, IPO")
Despite volatility in the secondary market, triggered by sustained selloff from overseas funds and uncertain global trade environment, 12 companies managed to raise ₹10,454 crore through initial public offerings (IPOs) so far this month.
While the markets have been wobbling over the past couple of months, July and August have been the most active this year, with 13 and 12 IPOs, respectively.
During August so far, the Nifty has slipped 0.2 per cent, the Nifty Midcap 100 by 1.1 per cent, and the Nifty Smallcap 100 by 2.3 per cent.
Foreign portfolio investors (FPIs) have been net sellers to the tune of ₹17,101 crore this month, extending their two-month selloff to over ₹40,000 crore.
Despite this, the broader primary market has held steady momentum through 2025, barring a brief two-month lull, with 49 issues mobilising ₹71,954 crore.
Experts said issuers have preferred to go ahead with their IPOs, even when conditions have been less than ideal, to avoid the risk of letting their public issue approvals lapse.
“One scenario is when a company has an urgent need for funds for expansion or debt reduction. Second, when selling shareholders are pushing for an exit. Third, because the IPO process itself is a three-to-four year journey, culminating in regulator approval, companies prefer to launch rather than restart the process later,” said Pranav Haldea, managing director (MD) of Prime Database.
Haldea said issuers have been more flexible on valuations, with several large players trimming issue sizes.
Ajay Garg, chairman and group managing director of Equirus Capital, also pointed out that right-sizing is helping deals get through.
For instance, JSW Cement cut its offer from ₹4,000 crore to ₹3,600 crore while Bluestone Jewellery pared its fresh issue from ₹1,000 crore to ₹820 crore and reduced its offer-for-sale component from 23.9 million shares to 13.9 million.
In fact, all but three August IPOs were under ₹1,000 crore. Experts said executing smaller deals in a tough market isn’t a challenge.
“IPO pricing is moving closer to what the market considers fair. Smaller issues can be executed with commitments from just three-five large investors while larger offerings require broader participation — and in volatile conditions, that is harder to achieve,” Garg said.
“Most recent IPOs have been below ₹1,000 crore. Strong participation of domestic investors in recent years has ensured that many such mid- or small-sized issues find enough support, even without heavy FPI demand,” Haldea noted.
While FPIs have been aggressive sellers in the secondary market, they have provided liquidity support when it comes to primary deals.
This month, for instance, FPIs have sold ₹21,079 crore worth of equities in the secondary market, but they have remained active buyers in the primary market, with net investments of ₹3,978 crore.
Looking ahead, the IPO pipeline appears strong. More than 100 companies have filed draft documents with the Securities and Exchange Board of India (Sebi) this year to raise over ₹1.6 trillion. However, investment bankers caution that the outlook may be challenging for big-ticket offerings.
“If volatility persists and the tariff war remains unresolved, smaller IPOs will likely keep coming, but large-sized issues may face a pause,” Haldea said.
