IPO rush, block deals fuel two-fold jump in market fundraise

Synopsis

Fund mobilisation through bulk and block deals in the Indian equity market witnessed a sharp recovery in the June 2025 quarter, increasing by 118.9% sequentially. This surge was fueled by improved secondary market sentiment and robust foreign and domestic inflows. IPOs and rights issues also experienced significant growth, reflecting renewed investor confidence and companies' efforts to strengthen their balance sheets.

ET Intelligence Group: The fund mobilisation through bulk and block (B&B) deals in the Indian equity market improved sharply in the June 2025 quarter according to the data from Equirus Capital following a recovery in the broader market after a slow start in the previous quarter. Sequentially, it increased by 118.9% to ₹1.7 lakh crore while staying muted year-on-year at 3.3% rise. The total funds mobilised through various routes including B&B, initial public offerings (IPO), qualified institutional placements (QIP), and rights issues rose by 103.5% sequentially and by 10.8% year-on-year to ₹2.2 lakh crore.

"The sharp rebound in equity fund raising this quarter is directly tied to the recovery in secondary market sentiment," said Bhavesh Shah, managing director and head of investment banking at Equirus Capital.

IPOs also reported renewed rigour in issuance. Money raised through this route increased by 88.6% sequentially to ₹29,652 crore. Also, funds through rights issue jumped fourfold to ₹7,644 crore by similar comparison, reflecting companies' eagerness to shore up balance sheets through shareholder-backed offerings.

Agencies

Underlying this uptick was a marked improvement in investor sentiment. The BSE Sensex rallied nearly 10% in the April-June period, buoyed by robust foreign and domestic inflows. This was in comparison with the 1.4% drop in the corresponding quarter of the previous year. Foreign portfolio investors, who withdrew ₹1.2 lakh crore in January-March 2025, flipped to net buyers, pouring in ₹38,673 crore during April-June, according to NSDL data.

"IPO investors are typically active in the secondary market as well. So, when markets are underperforming, it not only affects their existing portfolios but also dampens their appetite for new investments," said Shah. He expects the current momentum in fund raising to continue as long as the secondary market remains stable and domestic inflows stay strong,

Though the total transaction value of B&B deals improved sequentially, their number fell to 3,003 in the June quarter from 3,461 in the previous quarter reflecting higher average size per deal.

...moreless

...moreless