Graphic of the day: Where do IPO funds go?

Debt repayment eclipses new capital expenditure for Indian IPOs

By
Samreen Wani
Last Updated: Dec 02, 2025, 12:43 IST1 min
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A new Bank of Baroda report finds a striking skew in IPO fund deployment: just 26% of fresh equity is allocated for crucial capital expenditure, while 29% is used for debt repayment. Just 10% goes to working capital and branding. Out of a Rs 1.82 lakh crore mobilization (1.2 lakh crore through fresh equity with another Rs 62,000 crore via OFS), 34% flows to existing shareholders via OFS, bypassing new business plans.
A new Bank of Baroda report finds a striking skew in IPO fund deployment: just 26% of fresh equity is allocated for crucial capital expenditure, while 29% is used for debt repayment. Just 10% goes to working capital and branding. Out of a Rs 1.82 lakh crore mobilization (1.2 lakh crore through fresh equity with another Rs 62,000 crore via OFS), 34% flows to existing shareholders via OFS, bypassing new business plans.

First Published: Dec 02, 2025, 14:18

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Samreen Wani
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