July gears up for red-hot Rs 16,000 crore IPO action; liquidity crunch brewing at D-st?

Benchmark indices- BSE Sensex and Nifty-have fallen up to 3 per cent but it has been raining IPOs at Dalal Street as the month of July will be witnessing more than a dozen IPOs hitting Dalal Street in the month of July 2025. These 13 mainboard primary market offerings shall cumulatively raise over Rs 16,156 crore from the investors.

Even the broader markets have remained lacklustre in July 2025 so far as BSE midcap and smallcap indices have remained flat during the period under review. However, there has been no dearth of action in the primary markets, despite volatility in the secondary market, which poses a question: the primary market is denting the demand and liquidity of secondary market space.

Moreover, this is not the end of IPOs in the near future. Primary issues worth Rs 2.5 lakh crore are lined up as IPOs worth Rs 1.15 lakh crore have already received Sebi's not launch their initial public offer, while other issues worth Rs 1.43 lakh crore are awaiting the nod from markets watchdog. The IPO pipeline includes players from financial services, solar energy, unicorns, startups & more.

IPOs help increase the investible pool for investors. Over the last few years, the quality of companies coming for IPO has also improved. These factors help absorb the excess liquidity that institutional investors are sitting on, said Tejas Gutka, Fund Manager at Electrum Portfolio Managers.

"A big number of IPOs are lined up, which is similar to the size of cash holdings of mutual funds alone. Add to this the monthly SIP flows along with cash with other investors and it doesn't seem like it would have a negative impact on liquidity," he said.

After a series of block deals and stake sales by promoters in May and June, primary market is gaining traction at Dalal Street, diverting the funds of domestic institutions like mutual funds and insurance companies to IPO market, resulting in net buying in their portfolios and data.

More than Rs 50,000 crore have been already raised in H1, is expected to absorb some secondary market liquidity, said Manish Goel, Founder & MD at Equentis Wealth Advisory Services. Domestic fund flows are proving to be a strong anchor, with monthly SIP inflows averaging Rs 27,000 crore. Infact, close to 75 per cent of IPO funding this year has come from Indian investors, he said.

"Any short-term liquidity pressure is likely to be transitory, with the long-term effect being positive for India’s market depth, diversity, and investor engagement," Goel added. More than 70 per cent of recent IPOs are trading above the issue price and the average year-to-date return for 2025 IPOs stands close to 25 per cent, reflecting continued strong appetite in both markets."

Adding to this, Anooshka Soham Bathwal, Founder & CEO at Dhanvesttor said that reflecting steady market activity and impact of most of the major events gradually getting faded, many promoters see the current scenario as perfect time to go public. While slew of new IPOs temporarily takes away a bit of liquidity, this factor can be easily absorbed.

"It actually enhances breadth and liquidity in the market over the medium term. New IPOs aid in increasing volumes in the secondary market and provide investment options against the existing peers in the same industry. Release of liquidity through expiry of lock in period of earlier IPOs, as well, balances the liquidity a bit," she added.

First three weeks of July have seen IPOs like Crizac, Travel Food Services, Smartworks Coworking Spaces, Anthem Biosciences, which raised a total of Rs 6,868.72 crore via IPO route. 4 IPOs more including IndiQube Space, GNG Electronics, Brigade Hotel Ventures and Shanti Gold International worth Rs 2,280 crore opened in the week ended on July 25.

However, last week of July is set to kick-off five more issues including Laxmi India Finance, Aditya Infotech, Sri Lotus Developers & Realty, M&B Engineering and National Securities Depository (NSDL), which will raise more than Rs 7,000 crore from the investors via their initial stake sales.