Big-ticket IPOs Defy Expectations in 2025 with Strong Demand
Big-ticket initial public offerings (IPOs) typically leave investors cold. But 2025 has flipped that script, with larger issues drawing strong demand. The average subscription for IPOs above ₹5,000 crore this year has been around 17.7 times—the highest since 2021 and well above the 8–10 times average of previous years. Among the six large IPOs launched so far this year, four could be labelled blockbusters, getting subscribed in double digits—LG Electronics India (38.17x), Lenskart Solutions (28.35x), HDB Financial Services, and Groww (17.6x each).
The response to Hexaware Technologies and Tata Capital was relatively muted at 2.27x and 1.96x, respectively. IPO market watchers said this has been driven by institutional investors flush with liquidity.
“The bulk of subscriptions, which is 75–80%, comes from institutions,” said Arun Kejriwal, founder of Kejriwal Research. “Then corporate treasury and bank treasury invest in the IPO. They exit on Day 1 of the listing.”
2021’s IPO bump was largely due to Nykaa—subscribed 81 times the shares on offer.
Large issuances usually get lower subscriptions than smaller ones, primarily because most struggle to deliver listing gains. One theory is that larger supply + steep pricing = lower chance of a listing pop.
This time, demand for large IPOs has been higher because many of them—such as Tata Capital and HDB—were already trading in the unlisted market, giving investors a reference price. “When it differs from the IPO price, it opens up short-term arbitrage opportunities.”
Collectively, these six large IPOs in 2025 mobilized about ₹62,000 crore. According to ETIG data, 84 IPOs have raised ₹1.29 lakh crore so far this year. “The IPO market is always a function of a bull market.”
“When valuations are rich, liquidity turns towards the primary market. As more participants chase allocation, subscription numbers rise.”
The Selective Approach
Merchant bankers said the surge is fueled by investors who prefer profitable, proven businesses over risky or untested ideas. “The 2025 IPO cycle shows that investor risk appetite hasn’t reduced; it’s become more intelligent.” “The ‘excesses’ phase has given way to selectivity: investors are willing to pay up for scale, profitability, and brand-led growth, not narratives alone.”
In 2021, apart from Nykaa, large issues like Paytm and Sona BLW barely crossed 2x subscription. In 2022, LIC’s ₹20,557 crore IPO was subscribed 2.65x, while Delhivery managed 1.33x.
2023 saw no IPOs above ₹5,000 crore.
In 2024, the bull market drove strong demand for Bajaj Housing Finance (49.97x) and Vishal Mega Mart (20.47x).
“There is a strong shift in investor preferences for businesses with disruptive models.”
Investment Banking, Equirus Capital. “Investors don’t want to back me-too companies unless they are category leaders.”
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