The spat of new issuances in the last few weeks (LG Electronics, Tata Capital, Lenskart, Groww, Physicswalla) has brought IPOs back into prominence.

October proved to be the busiest month ever for IPOs in India: 15+ issues raised over INR 40,000 Cr in the month alone. Some of the largest transactions driving the month included: LG Electronics India Ltd. mobilising around INR 11,000 Cr and Tata Capital Ltd. raising around INR 15,000 Cr. Subscription levels remained high: according to one source, across ~72 IPOs in April-October FY26, the average subscription was ~29.3x.

Interestingly, Foreign portfolio investors (FPIs) showed a notable tilt toward the primary‐market: in this financial year till date, FPIs invested ~INR 62,125 Cr into the Primary Markets, while they withdrew INR 78,444 from the Secondary Market. While inflows into IPOs were strong, broader FPI flows remain uneven: after the October inflow, selling resumed in the first week of November. The heavy FPI participation in IPOs (rather than secondary market) suggests a strategic preference: global investors are selectively entering via fresh issues rather than large--scale secondary buys, likely due to global economic/dislocation risks.

Valuations are elevated but supported by strong growth/structural arguments: market commentary on recent fundraising notes “ valuations high, but growth justifies premiums” in certain sectors. A recurring theme: domestic investor appetite (retail, HNI, mutual funds) plus plentiful liquidity are driving the issuance boom, FPIs are important but not yet dominant in secondary flows.

The major IPOs also reflect global investor interest: e.g., LG Electronics India’s listing was one of the largest of the year, and anchor book investments included global funds.

Implications for the market & portfolios

The scale of fundraising and intensity of issuance in October underscore confidence in India’s capital markets. The fact that companies are willing to list and investors are willing to subscribe, even at elevated valuations suggests robust market depth and liquidity. This bodes well for equity market sentiment and may support broader market gains. However, the high activity also warrants caution: elevated valuations increase the margin for disappointment. Reports show that even over April-October, while many IPOs performed well, a meaningful portion trade below issue price.

The pipeline and issuances reflect structural growth sectors in India:

• Manufacturing/consumer (LG Electronics India)
• Financial services (Tata Capital)
• Groww (Fintech)
• Pine Labs (Payments/Fintech)
• Physicswalla (education-tech)
  

Of course, as with all things, there are things to watch out for:

1. Over-supply: With many issues in quick succession, absorption risk increases.
2. Post-listing performance: Historically, listing‐day pops may not translate into long‐term value unless business performance sustains.
3. Foreign flow reversals: The November resumption of FPI selling after October’s pause is a warning that flows can reverse quickly.

This presents a compelling window— but one that also demands disciplined strategy, careful selection, and awareness of risks. The structural growth story remains intact, but the “boom” in issuance means that not all opportunities will be equal.