Indian IPOs: Exit Routes Over Fundraising

Over the past five years, many Indian companies have used IPOs (Initial Public Offers) to let existing shareholders sell their shares rather than to raise new money for the company.

This means that a lot of the money raised in IPOs has gone to these shareholders instead of helping the company grow.

Retail investors often treat IPOs as a short-term trading opportunity, applying for shares and selling them quickly after listing.

However, the data shows that many IPOs do not perform well after listing, with a significant number of stocks falling below their issue price.

This trend has led to concerns about the long-term health of the IPO market and the potential risks for retail investors.

Despite this, the enthusiasm for IPOs remains high, with a large pipeline of upcoming IPOs expected in 2026.