How much IPO money is India Inc. investing in new projects in 2025?

In 2025, nearly 20% of money raised from IPOs was earmarked for new projects, plant, and machinery, a significant increase from 8% last year.

Who benefits most from Indian IPOs in 2025?

While companies are investing more in capex, exiting investors and promoters still received approximately 61% of the ₹1.6 trillion raised by 96 companies so far in 2025.

Why are Indian companies focusing on organic growth over acquisitions?

Companies are turning to organic growth due to rich public-market valuations for acquisitions and the availability of cheaper organic expansion routes.

Home / Business and Economy / IPOs Fund Growth: Capex Surges, Exits Slow

IPOs Fund Growth: Capex Surges, Exits Slow

8 Dec

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Summary

IPO money for new projects and machinery nearly doubled this year.
Exiting investors and promoters still receive over 60% of IPO funds.
Companies increasingly fund growth organically, not via acquisitions.

IPOs Fund Growth: Capex Surges, Exits Slow

Fresh issuances in 2025 show a notable trend: approximately 20% of capital raised from initial public offerings (IPOs) is now earmarked for new projects, plant, and machinery, a substantial increase from just 8% in the previous year. This renewed focus on capital expenditure (capex) aligns with government calls for private sector investment.

However, the analysis reveals that despite this investment in expansion, a significant portion of IPO proceeds, over 60%, still goes to promoters and exiting shareholders. This trend reflects a strong private market exit cycle. Companies are increasingly prioritizing organic growth, with acquisition outlays significantly decreasing.

This reallocation of funds towards expansion signifies a move towards more efficient use of public money. While capex allocations have nearly tripled, a substantial portion is for upgrading existing assets. Nevertheless, new project expansions are gaining momentum, signaling a potential revival in new capacity addition across various sectors.