HNI interest in IPOs takes a dip, despite buoyant market activity

While India’s IPO market continues to remain active with a steady pipeline of public offerings, the enthusiasm among high net-worth individuals (HNIs) appears to be waning. Data indicates a noticeable drop in the average number of HNI applications so far this year, marking the first such decline in several years.

In the current calendar year up to 24 May, a total of 12 IPOs have hit the market, collectively raising close to Rs 21,000 crore. Despite this robust mobilisation, the average number of HNI applications has dropped to approximately 1.2 lakh per IPO — down from the previous year’s average of 1.44 lakh, media reports citing data sourced from Prime Database say.

Interestingly, the marginally strong average this year is largely due to the strong HNI interest seen in IPOs launched in January. The initial offerings of 2025 — including Standard Glass Lining Technology, Quadrant Future Tek, Laxmi Dental, Stallion India Fluorochemicals, and Denta Water & Infra Solutions — each attracted between 2 lakh and 3.5 lakh HNI applications.

Moneycontrol reported that the tide had however turned post-January. It noted that recent issues such as those by Dr Agarwal’s Health Care, Ajax Engineering, Hexaware Technologies, Quality Power Electrical Equipments, and Ather Energy witnessed a drastic fall in HNI participation, with applications dropping to mere thousands.

For example, the Rs 8,750 crore IPO of Hexaware Technologies garnered only 3,540 HNI applications, while Ather Energy’s Rs 2,981 crore issue, launched in April, received just 3,940 applications in the HNI category.

Market experts attribute this shift to broader global and domestic uncertainties that have impacted investor sentiment. “The first few months of the year were clouded by apprehensions around a global tariff war, which deterred many HNIs,” said an investment banker associated with one of the IPOs launched last month.

He further noted that primary market trends often mirror the mood of the secondary markets. “The overall outlook became volatile following political developments in the United States, especially after Trump took office in late January. Since then, equities have been jittery, and that has clearly influenced HNI appetite for IPOs.”

Despite this lull in high-value retail participation, the IPO market is far from subdued. With two issues currently open and another set to open on Tuesday, 27 May, investor activity remains lively. Moreover, nearly 70 companies have secured SEBI approvals and are waiting in the wings to launch their public offers.

While institutional and retail investors may continue to fuel momentum in the IPO space, the industry will be closely watching whether HNIs return in greater numbers as market stability improves in the months ahead.