Since the beginning of this calendar year, 2025, the markets have been going through rough times. The markets have been highly volatile due to multiple reasons, starting from a war-like situation in India, the Middle East crisis, trade war between the US and the rest of the world, continuous imposition of new tariffs by the US government, and more. Despite all these challenges, the public market fundraising in India has shot up and reached one of the highest levels in history. In the past seven months of this year, the Indian stock market fundraising reached ₹1.3 lakh crore, which is phenomenal.
So, What Made This Possible?
You must be wondering how fundraising hit such a higher target amidst all this turmoil, isn’t it? It is all because of the Initial Public Offerings (IPOs) and Qualified Institutional Placements (QIPs). Here are the numbers that will help you understand how fundraising shot up to ₹1.3 lakh crore.
| Months | Mainboard IPOs | SME IPOs | QIPs | Total Issue Size (₹ Cr.) | |||
| No. of Issue | Issue Size (₹ Cr.) | No. of Issue | Issue Size (₹ Cr.) | No. of Issue | Issue Size (₹ Cr.) | ||
| Jan 2025 | 6 | 4845 | 20 | 880 | 3 | 3961 | 9686 |
| Feb 2025 | 3 | 10878 | 20 | 930 | 1 | 700 | 12507 |
| Mar 2025 | 0 | 0 | 15 | 560 | 7 | 9387 | 9948 |
| Apr 2025 | 1 | 2981 | 4 | 85 | 1 | 1250 | 4316 |
| May 2025 | 6 | 8983 | 13 | 587 | 1 | 110 | 9680 |
| June 2025 | 8 | 17688 | 30 | 1300 | 7 | 14085 | 33073 |
| July 2025 | 13 | 16127 | 24 | 1275 | 10 | 30500 | 47902 |
| Total | 37 | 61502 | 126 | 5618 | 30 | 59992 | 127112 |
So, as you can see from mainboard IPOs, funds raised during these seven months were ₹61502 crore, followed by QIPs, from which ₹59992 crore was raised, and from SME IPOs, ₹5618 crore was raised during the period.
While the first seven months have been comparatively successful for fundraising, in the calendar year 2024, the total fund raised was ₹3 lakh crore from these three above-mentioned routes.
Massive Offloading by FIIs
While the fundraising has been steady enough given the geopolitical situation, Foreign Institutional Investors (FIIs) offloaded their investments heavily during this period as well. They offloaded equities worth ₹1.21 lakh crore and above. Having said that, from the primary market, they overall became net buyers with a net purchase of ₹35750 crore of equities.
Experts’ Views on Market Scenario
As you can gauge from the above data, the market is swinging two ways right now. While on one hand, there is heavy selling pressure from the FIIs, on the other hand, IPOs are injecting funds into the market. As per experts, this is due to the attractive valuations of the newly listed companies. While the valuations in the secondary market look stretched, in the primary market, the IPOs have fair valuations. This is one of the primary reasons not only the FIIs but also the HNIs and retail investors are getting attracted to the IPOs, more than investing in the secondary markets currently.
While the long-term growth prospects of the Indian equities present in the secondary market remain strong, for the short term, it looks volatile. This is why FIIs are diversifying their investments and shifting a significant share of the same towards the primary market.
Source: MoneyControl
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