by ?1.77 Trillion Raised as Companies Rush to Exit Before Everything Corrects
Mumbai India’s initial public offering market has hit an absolutely staggering ?1.77 trillion ($19.6 billion), surpassing last year’s record as companies rush to raise capital before investor appetite inevitably evaporates and leaves them holding the bag of their own valuation.
A total of 100 mainboard IPOs have closed this yearthe first time since 2007with aggressive issuance continuing through December as companies attempt to crystallize valuations while foreigners still think Indian equity is underpriced.
“Companies are opportunistically raising massive amounts of capital,” noted one analyst, employing the polite financial term for “getting out while the getting is good.” With five more offerings scheduled through December 16, including ICICI Prudential Asset Management’s $1.2 billion IPO, the value is set to rise further before it inevitably crashes.
Of the 93 companies listed through November, 63 delivered listing-day gainssome as high as 76 percent. However, the average return from issue price to current market price is just 8 percent, which is another way of saying “most people who bought IPOs hoping for quick gains got disappointed after three weeks.”
The 2025 IPO boom represents what analysts diplomatically call “heightened retail investor participation”meaning regular people are using IPO subscriptions the way previous generations used lottery tickets. Domestic institutional investors have provided consistent support, but foreign investor participation remains cyclical, which explains why the market rallied on Friday and might crater Wednesday.
Meesho, Aequs, and Vidya Wires raised ?5,421 crore, ?921 crore, and ?300 crore respectively, contributing to a primary market that appears to be copying the secondary market’s strategy: “raise capital first, ask sustainability questions later.”
Read deeper analysis of IPO boom dynamics at Bohiney Magazine’s primary market investigation.
SOURCE: https://bohiney.com
SOURCE: Bohiney.com ()
