IPO market booms, but exits dominate

India’s IPO market may be booming, but the story beneath the surface is more about exits than expansion.

A growing chunk of IPO proceeds is coming from offer-for-sale (OFS) deals, where existing investors cash out their stakes, rather than companies raising fresh funds for growth.

In fact, since 2016, OFS volumes have surpassed fresh capital in nearly every year except 2021.

In 2024, companies raised only $2.5 billion in fresh equity, while OFS deals brought in a hefty $7.7 billion.

So far in H1 2025, the trend continues, with OFS still dominating new issues.