FPIs inject Rs 14,247 crore into Indian primary market in July amid IPO surge

ET Intelligence Group: Net inflow of foreign portfolio investors (FPI) in the Indian primary market hit a seven month high of $1.7 billion (₹14,247 crore) amid buoyancy in initial public offerings (IPO). The previous high was in December 2024 when FPIs had invested $2.1 billion (₹18,036 crore) through the primary route.

Primary market includes IPOs and private placements. In July, the number of IPOs at 13 was the highest in any of the months of the current calendar year so far. These IPOs collectively raised ₹16,127 crore. In the previous month, while the number of IPOs at eight was less, the amount raised was higher at ₹17,690 crore, skewed by the IPO of HDB Financial Services, which scooped up ₹12,500 crore through a combination of fresh issue and offer for sale.

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FPIs, however, turned net sellers of Indian equities in secondary market in July amounting to net outflow of $3.7 billion (₹31,988 crore) for the first time in four months following heightened uncertainties related to global trade and geopolitical situation. This resulted in net outflow of $2.1 billion (₹17,740.6 crore) in July, primary and secondary market put together.

The benchmark indices have shown signs of fatigue, losing over 3% last month. If the weakness persists, it may affect the flow of new IPOs in the coming weeks thereby impacting the FPI investments in the primary market.