The massive supply of paper into the Indian stock market is expected to continue with up to $70 billion estimated to come in over the next 12 months, according to Jefferies India. That’s a whopping Rs 6.2 lakh crore at the very least. The supply includes initial public offerings, qualified institutional placements, and promoter/private equity blocks. The figure is the same as in the previous 12 months.
“Clearly the attraction for corporates as well as for existing private equity investors is that they can continue to raise capital at attractive valuations, strategists at the brokerage say. MSCI India, they point out, continues to trade at a price-earnings multiple of 22x forward earnings or 25 times, if financials are excluded. The only caveat is a market collapse, they note.
Why promoters and PE Firms are cashing in
Approximately Rs 72 000 crore has been raised via IPOs in 2025 until end August. Interestingly, the offer for sale component has been significantly bigger than the fresh capital component both in 2024 and 2025. Thanks to the rich valuations that stocks today command, many promoters too are cashing out. Between January and early June, sales of stakes by promoters had amounted to Rs 71,000 crore, data from primebbdatabase showed. This compares with total sales of Rs 2.45 lakh crore by promoters in 2024 and Rs 1.62 lakh crore in 2023.
Among the large IPOs expected to hit the markets are Tata Capital, National Stock Exchange and Jio Platforms. While Tata Capital is expected to raise around Rs 16,000 crore, the NSE offering could be as much as Rs 25,000 crore. Jio Platforms is tipped to be India’s biggest IPO ever, with an offering of Rs 30,000 crore, Motilal Oswal has estimated. E-commerce platform Flipkart could be among consumer tech’s biggest listings. The new age technology companies (NATC) that are readying for an IPO include Pine Labs, PhonePe, Zepto, Lenskart and Meesho.
Next wave of listings: From giants to tech unicorns
As FE recently reported, about half the new-age tech companies that plan to list on the bourses are yet to turn profitable. Among the loss-making firms are edtech unicorn PhysicsWallah, e-commerce platforms Meesho and Flipkart, logistics players Shiprocket and Shadowfax, fintech PayU and Innoviti, quick commerce unicorn Zepto, meat-delivery startup Licious, mattress maker Wakefit, and F&B house of brands Curefoods and Rebel Foods. However, there could be appetite for such businesses since some start-ups have performed well post listing.