Market activity in August stayed strong with 13 mainboard initial public offerings (IPO) raising Rs 15,200 crore, while 28 SME IPOs raised Rs 1,345 crore, marking the highest SME fundraise since September 2024.
Despite the momentum, most listing gains remained modest, reflecting cautious investor sentiment. Analysts said interest in new issues continues, but expectations are tempered due to global challenges and a slowdown in the domestic market.
Indian IPOs had raised Rs 16,124 crore in July and Rs 17,688 crore in June. The SME segment alone saw 28 companies tapping the market in August, higher than Rs 1,205 crore raised in July and Rs 1,300 crore in June.
Experts attributed the rise in IPO activity to greater allocations from both foreign and domestic investors, who found opportunities in the primary market amid stretched valuations in the secondary market. New offerings gave investors an entry point into fundamentally strong businesses, though most were priced at a premium, leading to limited listing-day gains.
&ldquo;Despite sluggish earnings growth and headwinds like high tariffs, the market continues to be resilient. A resilient market coexisting with tepid earnings growth has made the Indian market the most expensive in the world. Consequently, FIIs have been sustained sellers, but massive DII buying totally eclipsing FII selling is supporting the market even amidst strong headwinds,&rdquo; said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Only a few companies with unique business models and strong growth potential &ndash; such as NSDL, Anthem Biosciences, and Aditya Infotech &ndash; sustained follow-up buying after listing.
Among mainboard IPOs, Knowledge Realty Trust led the charts in August with a fundraising of over Rs 4,200 crore, followed by JSW Cement at Rs 3,600 crore and Vikram Solar at Rs 2,080 crore.
The interest in primary issuances grew as secondary market activity remained subdued due to global uncertainty. Recent US tariff actions against its trading partners added to concerns about global trade and economic stability.
Analysts believe that listing gains may improve with stronger secondary market participation once geopolitical tensions ease. [Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed]

13 mainboard IPOs and 28 SME IPOs boost fundraising despite cautious market sentiment

IPO funding hits Rs 15,200 cr in August

13 mainboard IPOs and 28 SME IPOs boost fundraising despite cautious market sentiment

August 26, 2025 | 14:16 IST