Capex get more IPO cash; cos keep powder dry

where angels, early investors and growth private equity funds typically exit through IPOs, Azeez expects OFS to dominate in 2026 as well.

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With OFS accounting for about 60% of IPO amounts, that leaves roughly 40% of IPO haul as fresh capital for companies themselves in 2025, money they are now directing towards restarting expansion, supporting working capital and paring down debt.

More than 55-60% of this year’s IPO proceeds have been allocated to balance sheet strengthening activities, “a marked shift from the broader patterns seen in earlier cycles,” said Aziz.

Capital upgrades

The data sourced from Prime Database till 3 December indicates that debutants which went public in 2025 have set aside 47% of their IPO fresh issue proceeds for capex, spanning across new projects, capital upgrades, and acquisitions. That’s a sharp climb from last year’s 28%, but still short of the 50%-plus levels seen in 2022 and 2023.

Even as capex allocations have nearly tripled this year from about ₹10,000 crore in 2022, about half is set aside to upgrade existing assets. These operational requirements have grown 47% in 2025 and 41% in 2024, after tripling in 2023, consistently outweighing greenfield and acquisition spends.