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IPO broke all records!

These days, there is a flurry of initial public offerings (IPOs) in the Indian stock market. It seems as if it is raining money. But this boom that we are all seeing is very different and special from the earlier boom. This time, not only foreign institutional investors but India's own domestic investors and the country's growing digital power have a big role behind this boom.

In a discussion on Wednesday, the country's top investment bankers confirmed that India's capital market has now become truly 'mature'. This self-reliance is not only giving tremendous stability to the market, but it is also opening new avenues of confidence and opportunity for common investors like us.

Savings became 'investment', UPI gave strength

The biggest reason behind this unprecedented boom in the market is 'financialization' of savings. Sonia Dasgupta, MD and CEO of JM Financial, said that people's saving habits have changed after the pandemic. People are now investing their money not just in traditional instruments (like bank FD or gold) but in modern instruments like equity. This increased liquidity has given unprecedented depth to the domestic equity market.

Digital payment methods have added fuel to this change. Gesu Kaushal, MD of Kotak Mahindra Capital Company said that IPO The widespread use of simple methods like UPI for applications has made the game completely easier. Now a lot of capital is coming not only from Mumbai, Delhi or Bengaluru, but also from states like Bihar and Uttar Pradesh. Today, it has never been so easy for a common man to invest money in the stock market.

Apart from this, there have also been major improvements in the market infrastructure. Now the time for IPO listing has become very short and the entire process has become more transparent and streamlined than ever before, which is continuously increasing the enthusiasm of the market.

MNCs trust 'Made in India'

The figures of this rise are a clear testimony to this. In the year 2024, the IPO had raised a record Rs 1.6 lakh crore from the Indian market. This year (2025) also the market is at the same stormy pace and has already raised Rs 1.$ lakh crore till now. There is full hope that this year will also break last year's record.

You might remember, last year Hyundai Motor India had a huge IPO worth Rs 27,859 crore. And just this month, LG Electronics India's Rs 11,607 crore IPO received record bids of Rs 4.4 lakh crore.

Amitabh Malhotra of HSBC India said that big multinational companies (MNCs) are now choosing India as a mature and independent capital market to list their Indian units. Earlier these MNCs were listed only in global hubs like London or New York and perhaps did not pay that much attention to India. But now, their view has completely changed given India's huge domestic investor base, improved regulations and market stability.

Traditional family businesses are also changing

Sunil Khaitan of Goldman Sachs India said that these MNCs are also getting tremendous benefits of listing in India. Their Indian subsidiary is getting much higher valuation (MNC premium) than its global parent company. The direct reason for this is India's fast economic growth rate and strong investor confidence, while their domestic markets are probably not growing that fast.

Not just MNCs, India's traditional family businesses are also changing. Gesu Kaushal said that the families who earlier used to shy away from even the name of IPO, are now seeing it as a big opportunity for the development of their business. A huge credit for this goes to the second generation entrepreneurs, who are more open-minded to professionalizing their operations and connecting with the common, i.e., retail investors for the long term.

Mutual funds are the real heroes

But the real hero of this whole story is 'Domestic Institutional Investors' (DIIs), especially mutual funds. Every year, Rs 3-4 lakh crore is flowing directly into the equity market from the homes of people like you and me. According to Sonia Dasgupta, this strong domestic participation is improving 'price discovery' (ie finding out the true price of a share) and reducing market volatility. Amitabh Malhotra also agreed that the increased participation of domestic institutions has created a healthy balance between issuers, bankers and investors, making IPO pricing more practical and rational.