July gears up for red-hot Rs 16,000 crore IPO action; liquidity crunch brewing at D-st?
Even the broader markets have remained lacklustre in July 2025 so far as BSE midcap and
smallcap indices have remained flat during the period under review. However, there has been
no dearth of action in the primary markets, despite volatility in the secondary market, which
poses a question: the primary market is denting the demand and liquidity of secondary market
space.
Moreover, this is not the end of IPOs in the near future. Primary issues worth Rs 2.5 lakh crore
are lined up as IPOs worth Rs 1.15 lakh crore have already received Sebi’s not launch their initial
public offer, while other issues worth Rs 1.43 lakh crore are awaiting the nod from markets
watchdog. The IPO pipeline includes players from financial services, solar energy, unicorns,
startups & more.
IPOs help increase the investible pool for investors. Over the last few years, the quality of
companies coming for IPO has also improved. These factors help absorb the excess liquidity
that institutional investors are sitting on, said Tejas Gutka, Fund Manager at Electrum Portfolio
Managers.
“A big number of IPOs are lined up, which is similar to the size of cash holdings of mutual funds
alone. Add to this the monthly SIP flows along with cash with other investors and it doesn’t
seem like it would have a negative impact on liquidity,” he said.