India’s primary market witnessed a historic surge in September, clocking the busiest month for initial public offerings (IPOs) in nearly three decades.
On the mainboard, 25 companies went public, the highest since January 1997, when 28 listings were recorded. These 25 IPOs raised over Rs 13300 crore during the month.
The small and medium enterprises (SME) platform also set fresh benchmarks, with 53 IPOs raising Rs 2,309 crore, the largest ever in a single month, both by volume and value.
The momentum has already made 2025 a record year for SMEs. With 207 listings so far, these firms have mobilised Rs 9,129 crore, surpassing previous annual fundraising highs with a quarter still to go.
Analysts credit the boom to strong foreign institutional inflows, alongside steady demand from retail investors and mutual funds, even as secondary markets oscillated. September itself was a tale of two halves, buoyant early on, volatile later, but still delivered gains. The Sensex and Nifty rose 2 percent each, the BSE MidCap advanced 3 percent, and the BSE SmallCap climbed 4 percent.
“Domestic liquidity has undergone a structural lift, with mutual funds, insurers, pension funds and retail investors creating a stable capital pool,” said independent analyst Ajay Bagga. “That money is chasing new issues, often oversubscribed many times over.”
Still, the rush comes with caveats. Heavy mainboard issues can drain liquidity from the secondary market, weighing on existing stocks. While India’s price-discovery mechanism remains resilient, experts caution that lofty valuations demand investor prudence.
For SMEs, the IPO route is proving more than a fundraising tool. Proceeds are being used for expansion, technology upgrades, debt repayment and working capital. Unlike bank loans, IPOs also enhance visibility, boost valuations and offer early investors an exit.
“The surge in SME IPOs reflects the deepening of India’s capital markets,” said Sachin Jasuja of Centricity WealthTech. “Investor appetite is heartening, but high oversubscriptions do not always translate into long-term gains.”
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