IPOs relatively moderated in December from 2025 peak: SEBI bulletin

Fund raising through Initial Public Offerings (IPOs) in India was relatively moderate in December compared to the peak levels in 2025, though the number of new issuances was the highest and issuance size was the third highest on the global front, as per the bulletin released by the market regulator on Friday. The moderation also came amid weak performance of the Indian equity market on US tariff jitters, persistent foreign outflows, and relatively high valuations. 

Through 51 Indian IPOs, over ₹25,500 crore ($260 crore) was raised in December, following the top issuer, the US ($900 crore from 11 IPOs) and the second-top fund raiser China ($520 crore from 31 IPOs), as per the Securities and Exchange Board of India’s (Sebi) bulletin. This indicates that market access and issuance capacity broadened even as the external environment remained unsettled, it said. Financial services accounted for more than 40% of the IPO scale in December, raising over ₹10,600 crore, followed by consumer services comprising 23%, and then healthcare taking 12% of the overall pie. 

It also said that Offer for Sale (OFS) dominated mainboard IPOs while the small and medium category was predominantly driven by fresh issues. Two weeks ago, Sebi Chairperson had said that OFS-led IPOs moderated to 55% in 2025 from the peak of 87% in 2020. “To say that there are more of OFS and less of fresh issue doesn’t go well with facts. From 2016, about 60% of the money raised is through OFS and it rose during 2020-2022,” Pandey had then said.

Debt issuances also moderated from the peak levels seen earlier in the year to over ₹74,000 crore. “Issuance activity was overwhelmingly driven by private issuances, underscoring its continued dominance in debt financing,” it said. The monthly bulletin is issued by Sebi’s economics and policy analysis department. 

Secondary market

Foreign Portfolio Investors (FPIs) continued their selling spree, offloading almost ₹39,000 crore during the month across equity and debt segments. For the entire calendar year 2025, the outflows were more than ₹1 lakh crore.

FPIs withdrew more than ₹22,600-crore worth of equities in December, taking the total outflows to ₹1.7 lakh crore in 2025. The outflow was influenced by the relative underperformance of the Indian market compared to its global peers, higher investor preference for markets led by emerging technology companies, currency volatility, escalating trade tensions, and stretched market valuations, as per the bulletin.

The debt segment saw a five-month trend reversal of foreign inflows. They were net sellers in this space, recording an outflow of more than ₹15,300 crore in December. “Approximately 90 per cent of these outflows originated from securities under the Fully Accessible Route (FAR), primarily triggered by rising domestic and global bond yields,” as per the bulletin.

Derivatives

The equity derivatives segment witnessed a fall in average daily turnover, with the metric falling 11% on month in December across the National Stock Exchange and down 8% on the BSE. 

Interest rate futures activity remained dormant at the BSE, with no recorded turnover since April 2024. However, that on the NSE saw a turnover fall of 12% on month in December, marking a reversal of the four-month growth trend observed between August and November. 

Sector-wise IPO trend till December in FY26