Blockbuster IPOs Defy Expectations as Investors Flock to Big-Ticket Offerings

The year 2025 has seen a remarkable shift in the dynamics of the initial public offering (IPO) market, with larger issues drawing strong investor demand, a departure from the typical trend of lower subscriptions for big-ticket offerings.

According to the article, the average subscription for IPOs above ₹5,000 crore this year has been around 17.7 times, the highest since 2021 and well above the 8-10 times average of previous years. This surge in investor interest has been driven primarily by institutional investors, who account for 75-80% of the total subscriptions.

Among the six large IPOs launched so far in 2025, four have been labeled as "blockbusters," with subscription rates in the double digits. These include LG Electronics India (38.17 times), Lenskart Solutions (28.35 times), HDB Financial Services, and Groww (17.6 times each). The response to Hexaware Technologies and Tata Capital, on the other hand, was relatively muted at 2.27 times and 1.96 times, respectively.

Experts attribute this shift to the abundance of liquidity in the market, as well as the preference of investors for profitable and proven businesses over riskier or untested ideas. The presence of a reference price in the unlisted market for some of the larger IPOs, such as Tata Capital and HDB, has also contributed to the increased demand, as it has opened up short-term arbitrage opportunities for investors.

The 2025 IPO cycle, according to industry observers, suggests that investor risk appetite has not diminished but has become more discerning. Investors are now willing to pay a premium for scale, profitability, and brand-led growth, rather than relying solely on narratives.