Has India's Mainboard IPO Activity Reached a 28-Year Peak?
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Synopsis
India's primary market is experiencing an unprecedented surge in IPO activity, with records being shattered in both mainboard and SME listings. This momentum reflects a robust investment climate and could signal a new era for investors and companies alike in the Indian financial landscape.
Key Takeaways
- 25 companies launched IPOs on the mainboard in September.
- SMEs raised a record Rs 2,309 crore through 53 IPOs.
- Total IPOs raised over Rs 13,300 crore in September.
- Sensex showed impressive growth from 80,364 to 80,795.
- India ranks third globally in tech startup funding.
New Delhi, Sep 26 (NationPress) In September, India's primary market witnessed its most bustling month in nearly 28 years, with 25 companies debuting on the mainboard. This surge marks the highest number of listings since January 1997, when a record 28 IPOs occurred.
In addition, the SME sector achieved a remarkable milestone, with 53 IPOs garnering Rs 2,309 crore, setting a record for both volume and value in a single month according to stock exchange data.
Overall, a total of 25 IPOs raised over Rs 13,300 crore throughout the month. Furthermore, SMEs collected Rs 9,129 crore through 207 listings, outpacing previous annual fundraising figures with a quarter of the year still ahead.
Experts attribute this growth to robust foreign institutional investments and persistent demand from retail investors and mutual funds, even amidst volatility in the secondary market. Mutual funds, insurers, pension funds, and retail investors are actively pursuing new issues due to valuation concerns in the secondary market.
In the broader market context, the Sensex has climbed from 80,364 to 80,795, with both the BSE MidCap and BSE SmallCap indices outshining the benchmark.
Additionally, India has secured the third position globally for tech startup funding, trailing only the United States and the United Kingdom, while surpassing Germany and France.
In its latest board meeting, SEBI decided to amend the minimum public shareholding (MPS) regulations for large firms planning IPOs. Under the new guidelines, companies with a market capitalization between Rs 50,000 crore and Rs 1 lakh crore will be granted extended timelines to fulfill public shareholding mandates.
These companies will now need to achieve a 15 percent MPS within five years post-listing and 25 percent within a decade. Currently, firms must meet the 25 percent threshold within three years.
Point of View
It's clear that the recent surge in India's IPO market reflects a significant shift in investor confidence. With strong foreign inflows and a proactive approach from regulatory bodies, we are witnessing a transformative phase in the Indian economy. This trend is likely to continue, bringing new opportunities for investors.
NationPress
26/09/2025
Frequently Asked Questions
What is the significance of the 28-year high in IPOs?
This milestone indicates a robust recovery and renewed investor confidence in the Indian market, showcasing the potential for future growth.
How did SMEs perform in September?
SMEs set a record with 53 IPOs raising Rs 2,309 crore, reflecting strong demand and investor interest in smaller companies.
What are the new MPS norms introduced by SEBI?
Under the revised norms, large companies will have extended timelines to meet public shareholding requirements, aiming to encourage more companies to go public.
What factors are driving the IPO boom?
The boom can be attributed to strong foreign institutional inflows, consistent retail investor demand, and favorable regulatory conditions.
Where does India stand globally in tech startup funding?
India has climbed to the third position globally for tech startup funding, trailing only the US and the UK.
