FPIs chase fresh listings, dump old stocks: ₹54K cr flows into primary mkt since Jan, Pg15.

Key Highlights:

• Foreign Portfolio Investors (FPIs) invested ₹54,178 crore in the Indian primary market between January 1 and October 17, 2025.
• FPIs sold shares worth ₹2.02 lakh crore in the secondary market during the same period.
• Seven companies raised ₹35,646 crore through IPOs in the current month, the highest monthly fundraising this year.
• Large IPOs included Tata Capital Ltd (₹15,512 crore) and LG Electronics India Ltd (₹11,607 crore).

Detailed Insights:

• FPIs are attracted to the primary market due to more attractive valuations and higher growth potential in new sectors and themes.
• The primary market offers opportunities for FPIs to deploy large amounts of capital at a fixed price, with preferential allotment under the Qualified Institutional Buyers (QIBs) category.
• In 2024, FPIs invested ₹1.22 lakh crore in the primary market and sold ₹1.21 lakh crore in the secondary market.
• The domestic primary market has seen 81 companies raise ₹1.21 lakh crore through IPOs so far this year, compared to 91 issues raising ₹1.6 lakh crore in 2024.
• FPI selling in the secondary market is attributed to higher valuations compared to other emerging markets, with India's Buffett Ratio exceeding 115 per cent - 125 per cent.

Key Concepts Involved:

• Foreign Portfolio Investors (FPIs): Entities investing in a country's financial assets without directly managing companies.
• Initial Public Offering (IPO): The first sale of a company's shares to the public.
• Secondary Market: Where investors buy and sell securities they already own.
• Qualified Institutional Buyers (QIBs): Institutional investors with expertise and financial strength.