IPO proceeds increasingly flow into digital infrastructure

Investors are shifting focus from physical expansion to scalability and capital efficiency

- Agnidev Bhattacharya

Regulation is also shaping how capital is labelled and deployed.

(ISTOCKPHOTO)

More than half of initial public offering (IPO)-linked capital expenditure (capex) in India in the first quarter of 2026 went into technology, cloud and network infrastructure, reflecting a broader shift in how newly listed companies are deploying capital.

The trend was visible in the composition of IPO spending patterns. Data from Uniqus Consultech shows capex accounted for about 30% of the ₹18,778 crore raised across 18 mainboard IPOs in the quarter. Within that, over 50% went into tech and related infrastructure, overtaking traditional outlays such as factories, warehouses and other physical assets.

Technology-linked capex in IPOs had historically remained limited, according to Raghuram K., partner for accounting and reporting consulting at Uniqus. Tech-related spending through IPO capex was minimal in the March quarter of 2025 and stood at around ₹170 crore in the same period of 2024, he said.