During YTD June-2025, India’s public equity markets mobilized ₹1.72 trillion — largely through Main Board IPOs. But the composition, intent, and participation reveal three evolving patterns:
🔹 1. Mobilization Dominated by Main Board
Main Board IPOs contributed 94% of the capital raised. SME IPOs, while only 6%, reflect growing appetite for micro-cap innovation and risk-taking by niche investors.
🔹 2. Motive Matters: OFS vs Fresh Capital
While 59% of Main Board funds were Offer for Sale (OFS) — enabling exits by promoters or early investors — 91% of SME IPOs were Fresh Issues, used for business expansion, working capital, or debt repayment. This shows SMEs are using equity to fuel future growth, not just offer exits.
🔹 3. The Rise of the Retail Investor (Especially in SMEs)
Retail investors accounted for 38% of SME IPO subscriptions, nearly double the 19% in Main Board IPOs. Overall, Qualified Institutional Buyers (QIBs) led the pack with 66% participation, especially in Main Board deals.
Conclusion:
India’s equity markets are maturing with multi-layered investor interest, improved SME access, and more diverse capital utilization. Investors must now evaluate not just the brand but also the motive behind the issue.
