There has been much chatter on how newly-listed firms are not benefitting from initial public offerings (IPOs) because it’s largely the promoters and venture capital (VC) and private equity (PE) players that are cashing out. There is concern the funds raised are not being fully utilised to grow the business.

True, in 2025 about 60% of the funds raised have been via offers for sale (OFS), while the rest is fresh capital. To be sure, the bulk of the funds may not be going back into the company, but a fair bit is. In some instances, the money is being used to repay working capital loans which would strengthen the balance sheet, freeing up cash flows than can be invested in the business.

The fact is that these........

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