Record IPO Year, But Mostly Exits: Promoter Exits Dominate India’s 2025 Market

India’s IPO market in 2025 saw record-breaking fundraising, but the numbers reveal a telling trend: 63% of the Rs 1.54 lakh crore raised through public offerings came from Offer for Sale (OFS) by promoters, not fresh capital infusion. This raises the question—are IPOs fueling growth or serving as exit routes?

According to Prime Database, Rs 97,059 crore was mobilised via OFS, the highest ever, compared to Rs 57,256 crore through fresh issues. The total fundraising stood at Rs 1,54,316 crore, making 2025 one of the strongest years for IPO activity.

Given this, the dominance of OFS underscores promoters’ preference for monetising stakes rather than channelling funds into business expansion.

The trend isn’t new but has intensified especially this year. In 2024, OFS accounted for 60% of Rs 1.59 lakh crore raised, while fresh issues contributed 40%.

Go back further, and the trend is even more visible, 2020 saw 87% of IPO proceeds from OFS, with fresh issues making up just 13%. Even in years like 2021, OFS commanded 64% of Rs 1.18 lakh crore raised.

Since 2017, the difference between the fresh issue and the OFS has been stark with the OFS as a percentage of funds raised standing at 83%, while the fresh issue only accounted for 17%. In 2025, only Rs 57,256 crore, just over one-third of the total, was earmarked for fresh capital deployment.

While IPO headlines tout massive fundraising, the actual inflow into businesses is far lower than it seems like. In 2025, names in the primary market had the OFS slice going higher. These include major listings like Tata Capital, LG Electronics and Lenskart. This pattern signals a structural shift that IPOs are increasingly being used as liquidity events for existing shareholders as the focus shifts away from capital growth.