Rs 1.8-lakh crore IPO rush: Guess where the money is really going
An analysis by BOB Economic Research highlighted that out of the Rs 1.82 lakh crore that was proposed to be mobilised by the companies, 66% was through a fresh offer while the balance would be going to the existing shareholders through the OFS.
- Dec 1, 2025,
- Updated Dec 1, 2025 4:41 PM IST
India’s IPO market has entered a golden phase, and one quiet outcome of this surge is the renewed thrust on capital expenditure across sectors, coupled with aggressive debt payments. With companies raising Rs 1.25 lakh crore in the first seven months of FY26 through IPOs, FPOs and OFS, the deployment of fresh capital is beginning to shape the next investment cycle.
An analysis by BOB Economic Research found that 189 IPOs show that the total amount to be raised through fresh equity, as per the documents filed, was Rs 1.20 lakh crore, with another offer for sale component being Rs 62,000 crore. Therefore, the proposed fundraising exercise was to garner Rs 1.82 lakh crore.
BOB Economic Research highlighted that out of the Rs 1.82 lakh crore that was proposed to be mobilised by the companies, 66% was through a fresh offer while the balance would be going to the existing shareholders through the OFS. This is significant because when existing shareholders sell their stake, it could go as profit in their accounts and hence will not go to the company to meet its business plans.
The highest share of the deployment list is repayment of debt, which is 29% (Rs 34,441 crore). “This is part of the deleveraging process where companies are going to market to raise funds which are used for repaying debt,” BOB Economic Research said in a report.
It also showed that Rs 31,058 crore, or nearly 26% of this fresh pool, is earmarked for capital expenditure. This signals that a large set of issuers are preparing for capacity building.
This allocation becomes even more relevant in the current macro environment, where private sector capex has remained cautious despite strong balance sheets.
With nearly a quarter of proceeds not yet disclosed, the data also showed that 9.1% of the funds will be mobilised for investment in subsidiaries, 1.9% for lease payments,3.6% for branding and marketing, and 6.2% for working capital.
The quinquennium ending FY25 witnessed an issuance of Rs 5.66 lakh crore by 413 companies. Significantly, the cumulative amount raised from FY05 to FY20 was marginally lower than this amount at Rs 5.64 lakh crore. There is hence evidence of a major boom in the IPO market of late.
India’s IPO market has entered a golden phase, and one quiet outcome of this surge is the renewed thrust on capital expenditure across sectors, coupled with aggressive debt payments. With companies raising Rs 1.25 lakh crore in the first seven months of FY26 through IPOs, FPOs and OFS, the deployment of fresh capital is beginning to shape the next investment cycle.
An analysis by BOB Economic Research found that 189 IPOs show that the total amount to be raised through fresh equity, as per the documents filed, was Rs 1.20 lakh crore, with another offer for sale component being Rs 62,000 crore. Therefore, the proposed fundraising exercise was to garner Rs 1.82 lakh crore.
BOB Economic Research highlighted that out of the Rs 1.82 lakh crore that was proposed to be mobilised by the companies, 66% was through a fresh offer while the balance would be going to the existing shareholders through the OFS. This is significant because when existing shareholders sell their stake, it could go as profit in their accounts and hence will not go to the company to meet its business plans.
The highest share of the deployment list is repayment of debt, which is 29% (Rs 34,441 crore). “This is part of the deleveraging process where companies are going to market to raise funds which are used for repaying debt,” BOB Economic Research said in a report.
It also showed that Rs 31,058 crore, or nearly 26% of this fresh pool, is earmarked for capital expenditure. This signals that a large set of issuers are preparing for capacity building.
This allocation becomes even more relevant in the current macro environment, where private sector capex has remained cautious despite strong balance sheets.
With nearly a quarter of proceeds not yet disclosed, the data also showed that 9.1% of the funds will be mobilised for investment in subsidiaries, 1.9% for lease payments,3.6% for branding and marketing, and 6.2% for working capital.
The quinquennium ending FY25 witnessed an issuance of Rs 5.66 lakh crore by 413 companies. Significantly, the cumulative amount raised from FY05 to FY20 was marginally lower than this amount at Rs 5.64 lakh crore. There is hence evidence of a major boom in the IPO market of late.