October 30, 2025

Hold your breath, folks! LG Electronics India Ltd.’s massive $1.3 billion IPO sold out in just six-and-a-half hours on October 7. That’s the fastest full sell-out for a big IPO in 17 years in India. This isn’t a one-off — India is now one of the hottest places for IPO action worldwide, racing toward last year’s record of $21 billion raised. But here’s the masala: it’s not just foreigners buying these shares. Domestic mutual funds, insurance companies, and millions of retail investors are storming the IPO gates with wallets wide open. In fact, since January 2024, local investors have pumped nearly 979 billion rupees into IPOs, leaving foreign investors behind with 790 billion rupees, according to Prime Database. This shift means India’s capital markets are becoming more self-reliant and vibrant. Abhinav Bharti of JPMorgan Chase cheers this change, saying, “Households are deploying more and more of their savings into equities through mutual funds.” LG’s IPO was fire on wheels, scooping up $200 million an hour. Local buyers made up 60% of the bids, and the stock zoomed 48% on day one! Think about it—since Reliance Power’s lightning sell-out in 2008, LG’s speed is unmatched for such a giant offering. Why this rush? Mobile trading apps, easy account opening, and social media buzz have created a passionate and growing tribe of equity investors in India. Many risk-shy folks invest through monthly plans in mutual funds, happily riding the wave of a stock market set for its 10th year of growth. Domestic investors’ grip on companies listed on the National Stock Exchange has climbed to 19.2%, the highest in 25 years. Foreign investors? Their share slid to 17.3%, a low unseen for over a decade. New IPOs are rewarding bets too, delivering an average 18% return this year compared to the 9.7% gain in the Nifty 50 index. Despite foreign fund outflows totaling around $16 billion, local money — over $70 billion — pours in deep. That’s why companies line up to go public. Mumbai’s Plutus Wealth CEO Vivek Toshniwal says, “Everyday there is a roadshow. A euphoria like this is unprecedented.” Nearly 80 companies have gotten approval to launch IPOs, and over 120 more await permission. Big names are queued, like Reliance Jio, National Stock Exchange, Flipkart, PhonePe, and more – all eyeing billion-dollar-plus fundraising. But caution! Axis Capital’s Pratik Loonker warns, “If five or six large IPOs have poor listings, that can quickly spoil the party.” Some smaller IPOs are already feeling the heat, trading below their issue prices. Also, the median one-month return for IPO stocks has dropped from 22% last year to 2.9% in 2025. India’s IPO journey is somewhat like China’s 10-15 years ago, says Morgan Stanley’s Saurabh Dinakar, with a rising middle class and growing internet access fueling the boom. India now hosts over 90 unicorn firms, third in the world after the US and China. Regulatory help is flowing in; the securities regulator eased rules for big firms going public, and the central bank relaxed loan rules for investors buying IPO shares. Newer sectors like fintech and renewables are entering the IPO scene, making the market richer and more exciting. As Aberdeen Investments’ Rita Tahilramani says, “The breadth of the market is increasing because of the nature of companies that are coming. Liquidity has been abundant.” India’s IPO fireworks are dazzling, but will the party keep going strong or hit a bump? Stay tuned!

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Tags: Ipo, India ipo market, Lg electronics ipo, Domestic investors, Mutual funds, Stock market,