IPO, QIP, and SME fundraising touch Rs 1.30 lakh crore in first seven months of 2025

IPO

Despite persistent volatility in Indian equity markets so far in 2025 and sustained selling pressure from foreign institutional investors, capital mobilisation through public market instruments—namely main board and SME initial public offerings (IPOs), as well as qualified institutional placements (QIPs)—has reached around Rs 1.30 lakh crore in the first seven months of the year.

According to data from Moneycontrol, a total of 37 IPOs have been launched so far in 2025, collectively raising over Rs 61,500 crore. Additionally, 30 QIPs have been executed, garnering more than Rs 60,000 crore. In the SME segment, 126 IPOs have debuted, contributing Rs 5,618 crore to the overall fundraising tally.

Cumulatively, these channels have facilitated capital raising of nearly Rs 1.30 lakh crore during the current calendar year. In 2024, over Rs 3 lakh crore was raised through similar routes.

Concurrently, foreign institutional investors have offloaded equities worth over Rs 1.21 lakh crore in the secondary market, while making net purchases exceeding Rs 35,750 crore through primary market offerings.

Ajay Garg, CEO of SMC Global Securities, said this trend reflects strong investor belief in India’s long-term growth potential. Foreign investors are reducing exposure to the secondary market due to global uncertainty and high valuations, but they are participating in the primary market where pricing is more favourable and selective opportunities exist. QIPs and IPOs provide attractive entry points into fundamentally sound companies.

Domestic retail and high-net-worth individual (HNI) participation also remains strong. This fundraising momentum shows that companies are strategically mobilising capital and investors are shifting focus toward primary market opportunities that offer better value, Garg said.

So far in 2025, Sensex and Nifty rose 3.5 percent and 4.4 percent respectively while broader markets BSE MidCap and SmallCap lost 1.7 percent and 3.6 percent respectively.

Experts said that while foreign investors are exiting the secondary market, their investment in primary issues follows the same logic—driven by valuation concerns and global risk-off sentiment. Small- and mid-cap stocks in the secondary market now offer limited margin of safety, even though long-term growth prospects remain strong.

Nirav Karkera of Fisdom said that FIIs, with access to capital and specific mandates, are turning to primary markets to re-enter quality businesses at more reasonable valuations. India’s active IPO pipeline allows for such resets, while QIPs serve the same objective. Promoters confident in future growth are using rights issues and QIPs to fund expansion and reduce debt.

Experts said foreign investors remain bullish on India’s equity story, supported by sound macroeconomic indicators, political stability, structural growth drivers, and a favourable demographic profile. However, they are not relying solely on the secondary market for returns. On the other hand, SME IPOs follow a different pattern, often driven by individual investor enthusiasm, which can lead to brief and speculative rallies, it added.