Corporate India Raises Over ₹1.11 Lakh Crore Through IPOs, QIPs And OFS In July-August

Corporate India raised more than ₹1.11 lakh crore through mainboard initial public offerings (IPOs), qualified institutional placements (QIPs) and offers for sale (OFS) in July and August, as strong domestic liquidity kept the primary market active despite range-bound equity indices.

The two-month fundraising tally is the highest since October-November 2024, when companies and shareholders raised more than ₹1.14 lakh crore through the three routes.

IPOs accounted for more than 40% of the funds raised during the period. Twenty companies have raised more than ₹20,850 crore through IPOs so far in August, adding to the ₹28,650 crore raised by 12 companies in July.

QIPs And OFS Also See Traction

Listed companies have also turned to QIPs to raise fresh capital. Four companies have raised ₹3,250 crore through QIPs so far in August, compared with ₹25,114 crore raised by eight companies in July.

The OFS segment saw a large transaction in August, with Life Insurance Corporation of India raising nearly ₹31,447 crore. The transaction increased the public float of the country's biggest institutional investor. In July, Cochin Shipyard raised nearly ₹1,705 crore through the capital markets.

Companies and existing shareholders had delayed transactions during the sharp volatility that followed the outbreak of the West Asian war. With market conditions improving, companies are now using the available window to raise growth capital, repay debt and fund acquisitions.

The transactions are also helping promoters and private-equity investors provide exits and allowing companies to meet regulatory requirements, according to experts.

Domestic Flows Support Primary Market

Fundraising has remained strong even as benchmark indices have moved within a narrow range. The Sensex and Nifty rose 2.1% and 2.2%, respectively, in July. So far in August, they have fallen 0.5% and 0.7%, respectively, amid a renewed rise in oil prices.

Broader markets have performed better. The Nifty MidCap 150 gained 1.6% in July and has risen 1.2% in August. The Nifty SmallCap 250 advanced 1.1% in July and is up 2.8% so far this month.

DIIs Help Offset Global Headwinds

The equity market has faced several headwinds, including the prolonged West Asia conflict, higher crude and logistics costs, and concerns over the sustainability of information technology (IT) earnings in the artificial-intelligence (AI) era.

Domestic institutional and retail flows have helped offset uneven overseas buying. Retail investors contributed about ₹31,961 crore through systematic investment plans (SIPs) in July, while active equity funds received nearly ₹24,700 crore, giving domestic institutions substantial capital to deploy.

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