India’s initial public offering (IPO) market is poised for a record-breaking October, with companies forecasted to raise more than $5 billion, reflecting a robust investor appetite in one of the world’s busiest equity markets. Significant transactions, including billion-dollar offerings from Tata Capital Ltd. and the Indian division of LG Electronics Inc., have bolstered confidence that India’s $5 trillion stock market can accommodate substantial issuance, despite challenges such as U.S. tariffs and lackluster earnings that have hindered performance in other Asian markets.
This surge is largely driven by strong inflows from domestic mutual funds, which have counterbalanced foreign outflows and positioned India as a promising market for investment banks amid a globally uncertain economy. Financial institutions such as Jefferies Financial Group and JPMorgan Chase & Co. are optimistic that this momentum will persist following a record $21 billion raised from Indian IPOs last year.
“Cash holdings by mutual funds, consistently supported by steady domestic flows, have stimulated investor interest and positioned the market to accommodate significant fundraising,” said Dhiraj Relli, managing director of HDFC Securities Ltd. in Mumbai.
The IPO pipeline is robust. WeWork India Management Ltd. is set to launch its ₹3,000 crore (approximately $338 million) IPO on October 3, followed by Tata Capital’s ₹15,500 crore share sale on October 6. Additionally, LG Electronics’ Indian division is expected to raise around ₹115 billion during the same week, as reported by Bloomberg News.
Further offerings may follow; Pine Labs Ltd., a digital payments provider, aims to raise up to ₹6,000 crore later this month, and Canara HSBC Life Insurance Co. is preparing for a ₹2,500 crore IPO, according to sources familiar with the plans. ICICI Prudential Asset Management Co. is awaiting regulatory approval for a public issue likely to be launched by the end of October.
“As India is largely viewed as a resilient and demand-driven market, IPOs of scale and quality will continue to draw significant interest,” stated Ranvir Davda, co-head of investment banking at HSBC Securities and Capital Markets (India) Pvt.
However, while foreign funds continue to engage in primary offerings, their participation has diminished. Investments by foreign entities in Indian IPOs and placements have decreased to ₹43,000 crore this year, down from ₹1,20,000 crore in 2024.
From January through September, Indian firms have successfully raised about $11.2 billion through IPOs, according to Bloomberg data. An additional $8 billion to $10 billion could be raised in the final quarter of the year, suggested Kailash Soni, head of India equity capital markets at Goldman Sachs Group Inc.
“Investor engagement remains strong, with numerous companies currently conducting roadshows and both domestic and global investors eager to invest in India’s growth narrative,” he noted.
