India’s IPO market is booming, but most of the money from big listings is going to shareholders, not to the companies themselves.
In 2025, 103 companies listed on the mainboard and raised about ₹1.76 trillion. Of that amount, ₹1.11 trillion (63.4%) was paid to existing shareholders through an Offer for Sale (OFS). Only ₹0.64 trillion (36.6%) was new capital for the companies.
On the SME side, 267 smaller firms raised ₹11.43 billion. Here, ₹10.39 billion (91%) was fresh issue money, while just ₹1.04 billion (9%)** went to existing owners.
An Offer for Sale lets current owners—like promoters or private‑equity investors—sell their shares directly to the public. The money they receive goes to them, not to the company. A fresh issue creates new shares, and the cash goes into the company’s bank account for things like expansion, debt repayment, or working capital.
These examples show that many big IPOs are being used as an exit route for private‑equity investors and long‑term promoters rather than to fund new growth.
Smaller companies tend to need cash for expansion. Over 90% of the money raised in SME IPOs is new capital that goes straight into the business.
When most of the proceeds go to selling shareholders, investors buying those shares are essentially providing liquidity for exits, not funding future growth. This can make the investment riskier because the company may not have fresh cash to drive expansion.
Analysts note that mature, profitable firms are using the mainboard to transition from high‑risk private investors to broader market investors. While the companies are generally stable, the lack of new funding means they must rely on operational improvements to justify their high valuations.
India’s mainboard IPOs are becoming a popular exit strategy for private‑equity and long‑term promoters. Retail investors should recognize that buying into these offers may not fund the next phase of the company’s growth, so careful due diligence is essential.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.
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Join TelegramRetail investors have become the biggest driver of India’s IPO frenzy this year, putting about ₹42,000 crore into primary market listings – the highest amount ever recorded. Why Retail Money Is Surging Individual investors are using phones and laptops to apply for new shares, a trend that has tripled the retail IPO money compared with 2023. Easy access to systematic investment plans (SIPs) and higher household incomes have given them more confidence to take on equity risk. Mutual Funds Add Another ₹38,000 crore Mutual funds, which channel huge SIP inflows from individuals, have contributed an extra ₹38,000 crore to IPOs. This makes retail money the single biggest source of funding for new listings. Regulatory Structure Helps Retail Participation Dedicated retail quota: Every IPO reserves a portion just for individual investors. Allocation method: Oversubscribed issues use proportionate or lucky‑draw allotment, keeping risk low. Low downside: Even if a few IPOs underperform, gains from strong listings usually offset the loss. How India Stands Apart Globally Retail participation in Indian IPOs is far higher than in the US or Europe, where institutions dominate. The Indian market now resembles places like Hong Kong, South Korea and China, where individuals play a major role. Foreign Portfolio Investors (FPIs) Still Active FPIs have also increased their primary‑market exposure, investing about ₹45,700 crore this year – close to the total retail amount. They are attracted by fresh entry points and better‑valued high‑growth companies. What This Means for Traders For everyday traders, the retail‑led surge means more IPO opportunities and a market that rewards long‑term equity exposure. Because retail allocation limits are built‑in, the risk of overexposure in a single issue is reduced. Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before investing in any IPO.
India’s IPO market has quieted down as the year ends, with just one fresh issue to subscribe and a dozen companies ready to list. Only New Issue This Week Modern Diagnostic and Research Centre (MDRC) is opening a Rs 37 crore SME IPO on December 31, closing on January 2, and aims to list on January 7. The offer is priced between Rs 85–90 per share, valuing the diagnostics chain at roughly Rs 136 crore. MDRC runs 21 centres across eight states and posted a 55 % profit jump in FY 25, thanks to its asset‑light model. 11 Companies Set to List While fresh fundraising is scarce, the spotlight shifts to the 11 firms scheduled to debut, most on SME platforms. Grey‑market pricing shows mixed sentiment: Shyam Dhani Industries – strongest buzz, trading at a 100 % GMP, suggesting a possible double‑up on debut after a 988‑times oversubscription. E to E Transportation Infrastructure – quoted at a 75‑80 % premium, backed by a solid rail‑systems order book. Gujarat Kidney and Super Speciality – the sole main‑board listing, Rs 251 crore issue subscribed 5.2 times, but trading at a flat premium. Other listings show modest or flat premiums, indicating cautious optimism despite heavy oversubscription in some cases. What Investors Are Watching Grey‑market activity suggests investors are picking a few names they expect to outperform, while staying prudent on the broader batch of listings. Looking Ahead to 2026 Even with a slow finish to 2025, the pipeline for next year looks robust. Over Rs 2 lakh crore of IPOs are already approved or awaiting clearance, including big players such as Reliance Jio and PhonePe. Market participants expect a surge in activity once trading fully resumes in January. In the coming weeks, Bharat Coking Coal (BCCL), a subsidiary of Coal India, may launch a pure “offer‑for‑sale” IPO, putting around 46.57 crore shares on the market. Proceeds will go to the parent, not to BCCL itself. Other potential listings include Fractal, touted as India’s first AI‑focused IPO, and Hero Fincorp, a leading NBFC. Bottom Line For now, investors have limited new subscriptions but a handful of promising listings to watch. The real action is likely to pick up in early 2026, when large‑cap issuers re‑enter the market. Remember, this is just an overview, not a recommendation. Do your own research before making any investment decisions.
The Indian government wants Coal India’s eight subsidiaries to be listed on stock exchanges by 2030, aiming for better governance and value creation. Government Push for Listings The Prime Minister's Office has asked the coal ministry to map and list every subsidiary of Coal India Ltd (CIL) by 2030. The goal is to improve transparency, tighten governance and unlock value through asset monetisation. Subsidiaries Set for IPOs Coal India operates through eight subsidiaries: Eastern Coalfields Ltd Bharat Coking Coal Ltd (BCCL) Central Coalfields Ltd Western Coalfields Ltd South Eastern Coalfields Ltd (SECL) Northern Coalfields Ltd Mahanadi Coalfields Ltd Central Mine Planning & Design Institute Ltd (CMPDI) Key upcoming listings: BCCL and CMPDI are expected to list by March 2026 after completing domestic and international roadshows. South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd have been directed to list within the next financial year. Both BCCL and CMPDI have already filed draft red‑herring prospectuses (DRHP) with SEBI for an offer‑for‑sale (OFS) of shares. BCCL’s OFS could involve up to 46.57 crore equity shares. What This Means for Investors Listing these subsidiaries could bring several benefits: Greater transparency and corporate governance standards. Potential for new investment opportunities as the shares become publicly tradable. Possible unlock of hidden value in assets that were previously held within the state‑run structure. Coal India itself is targeting a production of 875 million tonnes of coal for the current financial year, underscoring its central role in India’s energy supply. Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.