The correction in the share market over the past six months has clearly impacted companies' fundraising activities. In 2024, 90 companies raised over ₹1.62 trillion through IPOs.
IPO: The decline in the share market over the past six months has also affected companies' fundraising activities. While 90 companies raised over ₹1.62 trillion through IPOs in 2024, only 10 IPOs have been launched in the first three months of 2025, raising a mere ₹169.83 billion.
Slowdown in IPO and QIP Activity
According to a report by MK Investment Banking, the investment banking arm of MK Global Financial Services Limited, the correction in the market has impacted fundraising. In 2024, 92 companies raised ₹1,62,261 crore through IPOs, while 91 companies raised ₹1,36,424 crore through QIP (Qualified Institutional Placement).
However, this pace has slowed down at the start of 2025. Only 10 IPOs were launched during January-February 2025, compared to 15 companies in the same period in 2024. Similarly, the number of QIPs has also decreased—18 QIPs were launched in the first three months of 2024, while only 7 have been seen so far in 2025.
SIP Investments Support the Market
However, the b inflow of Systematic Investment Plans (SIPs) in mutual funds has supported the market. According to the report, SIP investments have remained above ₹200 billion per month for the past 11 months. This figure has crossed ₹250 billion in the last five months, even though investors have experienced negative returns since September 2024.
Domestic Investors Offset Foreign Investor Outflow
Despite the outflow of foreign investors from Indian markets, domestic institutional investors (DIIs) have compensated for it. According to the report, DIIs invested ₹5.7 trillion over the past 11 months, while foreign investors withdrew ₹2.88 trillion. This has helped maintain stability in the Indian stock market.
