OFS Frenzy Pushes 2025 Fundraising Near ₹1 Lakh Crore, Sets New Record

India’s equity markets are witnessing a milestone year for fundraising through the offer-for-sale (OFS) route, with total proceeds for 2025 reaching ₹97,000 crore — nearly touching the ₹1 lakh crore mark and surpassing the previous record of ₹95,285 crore set in 2024. This surge has come even as broader market conditions remain mixed and volatility continues to influence investor sentiment.

The OFS mechanism, which enables promoters and large shareholders to sell their stake to the public, has become the preferred exit route for private-equity players and corporate promoters in 2025. Ample liquidity and consistent inflows from both foreign and domestic investors have supported this trend, helping companies secure smooth exits despite uneven performance across sectors.

In addition to record OFS fundraising, the overall IPO market is also hovering close to its historic peak. The total issue size for this year stands at ₹1.54 lakh crore, just short of the ₹1.6 lakh crore raised in 2024. This reflects strong primary market activity even as benchmark indices rise modestly and mid- and small-cap segments show relative weakness.

Market Volatility but Strong Fundraising Momentum

Indian equity markets have experienced sharp volatility in 2025. The benchmark Sensex and Nifty have each gained around 9 percent, while the broader markets have struggled. The BSE MidCap index rose only 1.7 percent, and the BSE SmallCap index declined 4 percent over the same period.

Despite this uneven performance, promoters and private-equity funds have leveraged favourable liquidity conditions to reduce holdings and execute exits. This shift marks a notable departure from earlier years, when IPOs were largely used to raise capital for business expansion or debt repayment.

Also Read: iPhone Surge in India to Drive Multi-Year Double-Digit Growth

Concerns Rising Over IPO Valuations and Exit Trends

Some market experts have expressed concern about the growing number of IPOs being used primarily as exit channels for existing investors rather than to fund company growth.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the recent trend of IPOs enabling exits for early private-equity investors and promoters is “unhealthy and undesirable.” He highlighted “overvaluation in IPO stocks and the willingness of retail investors to apply even at unjustifiable valuations” as worrying signals. According to him, IPOs should be “for capital mobilisation for expansion or debt reduction; not for facilitating exit routes for promoters and PE investors at fancy prices.”

OFS Dominates New Issues in 2025

OFS continues to be the dominant component of this year’s public market fundraising. It accounts for more than 68 percent of the total IPO size, up from 60 percent in both 2024 and 2023. Although still lower than the exceptionally high levels of 2022 (70 percent) and 2020 (86 percent), the current share reflects sustained appetite for secondary sales by large shareholders.

Market participants attribute this trend to the strong liquidity environment.

According to Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, promoters generally target higher valuations, and the current liquidity levels are encouraging many to cash out at attractive prices. He added that robust domestic liquidity is fuelling the market’s momentum and contributing to overall exuberance.

Largest OFS Deals of the Year

Several large transactions have driven the record-breaking OFS numbers in 2025:

• LG Electronics India led the tally, raising ₹11,607 crore.

• Tata Capital followed with an OFS size of ₹8,665 crore.

• Billionbrain Garage Ventures, backed by Groww, executed an OFS worth ₹5,572 crore.

• Lenskart Solutions conducted a sale of ₹5,127 crore.

• Other sizable deals included NSDL (₹4,011 crore), WeWork (around ₹3,000 crore), JSW Cement (₹2,000 crore), and Pine Labs (₹1,820 crore).

With nearly ₹1 lakh crore raised through OFS and the IPO market also nearing its record, 2025 has become one of the strongest years for public market exits in India’s capital markets.

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