New trend in IPO market.
India’s IPO market is going to take a big turn in 2025. Till now retail investors believed that it is easier to earn quick profits in small IPOs. But this year’s data is completely reversing it. Large and mega-sized IPOs, those worth ₹5,000 crore or more, are giving almost three times the returns of smaller issues.
More confidence in big IPOs
According to an ET report, Prime Database data shows that IPOs larger than Rs 5000 crore have given an average listing-day gain of 22%, while IPOs smaller than Rs 1000 crore have given only 7.5% profit. This clearly means that now investors are getting attracted towards big and prestigious issues. The IPOs of companies like LG Electronics India, Meesho, Groww and HDB Financial proved that scale and brand value drive listing strength and momentum.
Small IPOs were left behind
Smaller issues have been left behind in this change. The worst performing IPOs this year were all smaller than ₹1,000 crore. For example, Jinkushal Industries’ IPO was worth Rs 116.5 crore, which rose only 0.5% on the listing day. Whereas Om Freight Forwarders’ IPO of Rs 122 crore fell by almost 36%.
Growing role of institutional investors
Strong anchor and institutional participation is an important reason for big IPOs. Investors are confident that the price discovery will be correct and the stock will remain stable after listing. 57% FII holding in Groww’s IPO and about 7.5% FII+DII holding in LG Electronics show that liquidity and trading quality remains better in large issues.
Effect of OFS tag reduced
Earlier, offer-for-sale (OFS) was viewed negatively by investors. But in 2025, 9 out of 10 IPOs with OFS gave positive listing gains. This means that promoter exit is no longer a cause of fear for investors.
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Difference between pricing and quality
Pricing discipline and business quality are also better in big IPOs. Large issuers are brought under close supervision by bankers, regulators and institutional investors, making aggressive valuations difficult. Investors get this benefit on listing day.
Will this trend be permanent?
Market experts believe that the trend of mega IPO in 2025 is not just a sentiment but a change in investor behavior. Instead of looking for short-term profits, retail investors have now started investing money in stable, large and liquid issues. However, some analysts caution and say that not all big IPOs are perfect, so research is important before investing.