Archive · 18 Nov 2025
India's IPO Boom: Exit Route or Long-Term Capital?
In India, many companies are going public (IPOs) to sell their shares to the public.
However, the Chief Economic Advisor (CEA) says that these IPOs are often used by early investors to sell their shares and leave, rather than raising money for the company's long-term growth.
The head of SEBI, the market regulator, says all types of options should be available to investors.
The CEA also says India needs to rely less on bank loans and more on long-term investments from insurance and pension funds.
He warns that political factors are making it harder for India to get money from other countries, so India needs to find money within its own borders to achieve its goals of becoming a developed country.
IPOs are increasingly used as exit routes for early investors, rather than tools for raising long-term capital, according to CEA Nageswaran.
SEBI Chairman Pandey believes all types of options should be available to investors in the capital market.
India cannot rely predominantly on bank credit for long-horizon financing, and needs a deep and reliable bond market.
Insurance and pension funds should play a larger role in long-term investments.
Geopolitical factors are influencing capital flows, making external financing uncertain.
- Who
- V Anantha Nageswaran, Chief Economic Advisor, Government of India; Tuhin Kanta Pandey, SEBI Chairman
- What
- Discussed the role of IPOs in raising long-term capital and the influence of geopolitical factors on capital flows.
- When
- November 17, 2025
- Where
- CII Financing Summit
- Why
- To address the challenges in long-term financing for India's development aspirations.
Domestic Financing
External Financing
IPO Usage
Domestic Financing
IPOs are increasingly used as exit routes for early investors, undermining the spirit of public markets.
External Financing
IPOs provide an opportunity for investors to exit and for companies to raise money.
- Source
- V Anantha Nageswaran, Chief Economic Advisor, Government of India; Tuhin Kanta Pandey, SEBI Chairman
- IPOs in 2025
- 84 companies raised Rs 1.30 lakh crore, with 64% through OFS route
- India's Goal
- Become a developed country by 2047
- Key Challenge
- Reliance on external financing influenced by geopolitical factors
- Proposed Solution
- Strengthen domestic institutions and financial sector for long-term capital
Sources
IPOs becoming exit vehicle for early investors, undermining spirit of public markets: CEA
Internal resources are consistently becoming the most important funding source for India Inc, says DEA Secy Thakur
How to build a profitable startup? FYERS' Tejas Khoday shares his mantra
Capital market's unique investor base could double over the next 3-5 years: SEBI Chief
CEA Nageswaran Shares 4 Pillars For India’s Long-Term Economic Growth; Check Here
SEBI begins LODR reforms; clarity on NSE IPO NoC will come at the right time, says Pandey
IPOs turn exit vehicles for early-stage investors: CEA Anantha Nageswaran says spirit of public markets being undermined
SEBI aims to double the number of investors over the next 3-5 years: Pandey
IPOs increasingly becoming exit vehicles for early investors rather than mechanisms for raising long-term capital: CEA Anantha Nageswaran
Primary drivers of financing must increasingly come from within: Anantha Nageswaran
IPOs becoming exit vehicles for early investors, rather than tool for raising long-term capital, says CEA Nageswaran
Indian Economy Continues To Remain Stable Against External Headwinds: DEA Secretary
