IPO boom: Large IPOs hit 17x subscription on strong liquidity; what it means for investors – The Times of India
Large public issues, usually known for testing investor appetite, have emerged as the standout theme of India’s 2025 primary market. Contrary to earlier cycles where big IPOs struggled to draw heavy bids, this year has seen large issues attract some of their strongest-ever subscriptions, supported by abundant institutional liquidity and sharper investor selectivity.According to an ET report, IPOs valued above Rs 5,000 crore have averaged 17.7 times subscription so far this year — the highest since 2021 and far beyond the usual 8–10 times range seen in earlier bull cycles. Four of the six large issues launched in 2025 turned into clear blockbusters: LG Electronics India (38.17 times), Lenskart Solutions (28.35 times), and HDB Financial Services and Groww (17.6 times each). Hexaware Technologies (2.27 times) and Tata Capital (1.96 times) saw more moderate interest.Market watchers attribute the shift to broad-based institutional demand. “Nearly 75–80% of subscriptions are coming from institutions,” said Arun Kejriwal of Kejriwal Research, ET quoted. He added that corporate treasuries and bank treasuries have also been active bidders, often exiting on the day of listing.One big factor boosting appetite is price visibility. Several large 2025 issuers — including Tata Capital and HDB Financial Services — had long been active in the unlisted market. The gap between their grey-market pricing and IPO valuations created short-term arbitrage opportunities for investors, prompting aggressive bidding in the primary market.Collectively, these six IPOs have mobilised around Rs 62,000 crore this year. Overall, 84 IPOs have raised Rs 1.29 lakh crore in 2025 so far, as per ETIG data.Merchant bankers say the surge underscores a maturing investor mindset. “Risk appetite hasn’t reduced — it has become more intelligent,” said Amit Ramchandani, MD & CEO, Motilal Oswal Investment Advisors. “In 2025, investors are rewarding scale, profitability and brand-led growth, not just narratives. What’s striking is that even large issues are seeing strong institutional and HNI participation.”The contrast with earlier years is sharp. In 2021, excluding Nykaa’s 81-times subscription, several big issues such as Paytm and Sona BLW struggled to cross the 2-times mark. LIC in 2022 drew just 2.65 times interest, while Delhivery was subscribed 1.33 times. There were no mega issues in 2023, and in 2024 the bull market helped Bajaj Housing Finance (49.97 times) and Vishal Mega Mart (20.47 times) draw heavy demand.The 2025 market, analysts say, shows a decisive shift toward category leaders and disruptive business models. “Investors don’t want to back me-too companies unless they are clear leaders,” said Bhavesh Shah of Equirus Capital. While institutional investors continue to dominate allocations, retail participation has also become more consistent and discerning.Industry experts agree that the current IPO cycle is, above all, a reflection of the broader equity market mood. “The IPO market is always a function of a bull market,” said Siddarth Bhamre of Asit C Mehta. “When valuations are rich, liquidity moves to the primary market — and subscription numbers rise as more participants chase allocation.”(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
