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The latest blockbuster IPO week in the domestic stock markets has highlighted that investors continue to show strong confidence in India's growth story, even during a challenging phase when the Nifty and Sensex have delivered no returns for the past 13 months.
According to stock market experts, India has witnessed an unprecedented flow of funds into the primary market this year, highlighting the optimism and trust among investors in the country's economic potential. Ajay Bagga, Banking and Market Expert, told ANI, "This surge in Initial Public Offerings (IPOs), especially with the blockbuster issues of Tata Capital and LG Electronics India, unequivocally denotes a deep and unwavering confidence of domestic investors in the Indian growth story. It's a powerful signal that local capital is not just supporting but actively driving the primary market, offsetting global volatility and foreign capital outflows from the secondary market." India's primary market activity has remained strong in 2025. Excluding the recent large issues of Tata Capital (around Rs 15,512 crore) and LG Electronics India (around Rs 11,607 crore), as many as 74 Indian companies have already raised over Rs 85,241 crore through IPOs in the current calendar year. This has put 2025 on track to become one of the largest fundraising years in India's primary market history. The investor appetite has also been broad-based, with participation seen across multiple sectors, including non-banking financial companies (NBFCs), consumer durables, technology, and others. Aashish P Sommaiyaa, Executive Director & CEO of WhiteOak Capital, told ANI, "I think there is money on the sidelines to invest. If the secondary market looks like it has gone up a lot and has been flatlining or not rewarding people, and also with some news about Tata Capital IPO coming at a big discount to private market deals, there may be a perception that some IPOs are attractive relative to what is happening in the secondary markets -- so not surprised to see the subscription. Furthermore, there is a perceived tailwind for white goods and consumer sectors -- Tata NBFC and LG are both beneficiaries of this. Lastly, both are huge brands." As per the latest data, India has emerged as the fourth-largest IPO market globally in terms of funds raised, trailing only the US, Hong Kong, and China. In certain historical metrics and specific periods of high activity, India has even ranked as the third biggest primary market globally. The strong pipeline of companies planning to go public suggests that India's position will remain among the top globally. The overwhelming response to major IPOs is also reflected in their oversubscription numbers. LG Electronics India saw a phenomenal overall subscription of 54.02 times, while Tata Capital was subscribed 1.95 times overall. These figures demonstrate the high level of investor conviction despite volatility in the secondary markets. IPO Oversubscription occurs when the demand for shares in an Initial Public Offering exceeds the number of shares offered by the company. It is calculated by dividing the total number of shares bid for by the number of shares available. For example, if a company offers 1 crore shares but receives bids for 54 crore shares, the IPO is oversubscribed 54 times. In the Indian context, high oversubscription, particularly in the retail and Non-Institutional Investor (NII) categories, indicates strong investor confidence and a belief in the company's fundamentals and long-term growth prospects. Overall, the recent IPO rush highlights the resilience and optimism of domestic investors, reaffirming that India's growth story remains attractive to strong participation, even amid global uncertainties. (ANI)
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