- India,
- 08-Jul-2025 07:20 AM IST
Market Rebounds, Investor Confidence Rises
Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, said, “The surge in fundraising this quarter is directly linked to renewed enthusiasm in the secondary market.” Investor confidence has improved, clearly impacting fundraising activity. From April to June 2025, the BSE Sensex rose by nearly 10%, driven by strong buying from both foreign and domestic investors. According to National Securities Depository Limited (NSDL) data, while foreign portfolio investors (FPIs) had withdrawn ₹1.2 lakh crore during January-March 2025, they invested ₹38,673 crore in the April-June period.
Quarterly Fundraising Overview (in ₹ Crore)
| Source | June ’25 | March ’25 | QoQ Change (%) | June ’24 | YoY Change (%) |
|---|---|---|---|---|---|
| Bulk & Block Deals | 1,65,622 | 75,665 | 118.9 | 1,60,268 | 3.3 |
| IPOs | 29,652 | 15,723 | 88.6 | 18,159 | 63.3 |
| QIPs | 15,445 | 14,048 | 9.9 | 14,171 | 9.0 |
| Rights Issues | 7,644 | 1,881 | 306.4 | 4,495 | 70.1 |
| Total | 2,18,363 | 1,07,317 | 103.5 | 1,97,093 | 10.8 |
FPI Flows (in ₹ Crore)
| Month | Net FPI Flow |
|---|---|
| January | -78,027 |
| February | -34,574 |
| March | -3,973 |
| April | 4,223 |
| May | 19,860 |
| June | 14,590 |
| 6-Month Total | -77,901 |
Sensex Returns (%)
| Period | Return (%) |
|---|---|
| Jan–Mar 2025 | -1.4 |
| Apr–Jun 2025 | 10 |
Strong Momentum in IPOs and Rights Issues
The IPO market also witnessed tremendous activity this quarter. The amount raised through IPOs surged by 88.6%, reaching ₹29,652 crore. Rights issues saw a fourfold jump to ₹7,644 crore. Companies focused on strengthening their balance sheets, relying on shareholder trust—which resulted in these strong numbers.
Investor Confidence Reshapes Market Direction
Bhavesh Shah explained that IPO investors are often active in the secondary market as well. When market performance is poor, it affects not just their existing portfolio but also dampens appetite for new investments. However, this time, market stability and strong domestic investor participation have helped sustain the fundraising pace. Shah believes that if secondary market stability and investor confidence continue, the current momentum may persist.
Rise in Average Deal Size in Block Deals
While the total value of B&B deals rose, the number of deals actually declined. There were 3,003 deals in the June quarter compared to 3,461 in the previous quarter, indicating that the average deal size has increased. This suggests that large investors and institutional buyers are focusing more on bigger transactions.
Future Outlook
Market experts believe that if global and domestic economic conditions remain favorable, this pace of fundraising can be sustained. Increasing investor confidence and market stability may further fuel the momentum. Especially through routes like IPOs and rights issues, companies are trying to strengthen their financial positions even more.
