The IPO market is buzzing with new offerings this year, but there’s a twist — High Net Worth Individuals (HNIs) are clearly cooling off.
Data from Prime Database reveals that the average number of HNI applications has fallen in 2025, the first decline in years. This shift hints at a growing hesitation among wealthy investors in the primary market.
So, what’s going on here? For the average investor, this dip in HNI activity could signal a cautious outlook on new IPOs and, possibly, slower market momentum ahead.
HNI Interest Dips Despite Busy IPO Calendar
In 2025 so far, 12 IPOs have raised close to Rs 21,000 crore. However, the average number of HNI applications has dropped to around 1.2 lakh, down from 1.44 lakh last year. That’s a notable fall, especially since early in the year, HNI interest was relatively strong.
The first five IPOs — including Standard Glass Lining Technology and Quadrant Future Tek — saw robust HNI applications, ranging from 2 to 3.5 lakh each. But from February onwards, the story changed dramatically. IPOs like Dr. Agarwal’s Healthcare, Ajax Engineering, and Ather Energy struggled to attract more than a few thousand HNI applications.
Take Hexaware Technologies’ Rs 8,750 crore IPO as an example. It only got 3,540 HNI bids. Ather Energy’s Rs 2,981 crore IPO saw even fewer — just 3,940 HNI applications. From lakhs to thousands, that’s a steep drop.
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Why Are HNIs Pulling Back?
Experts point to market uncertainty as the main culprit. Global tensions, tariff wars, and domestic volatility have spooked investors. The investment banker who asked to remain anonymous said, “The first few months saw fears linked to the global tariff war. HNIs reacted by pulling back from IPOs.”
The political and economic climate hasn’t helped either. Since Trump took office in late January, market volatility has rattled confidence. “Primary market sentiment often mirrors the secondary market. Until volatility settles, expect subdued HNI interest,” the banker added.
What Does This Mean Going Forward?
For regular investors, a drop in HNI participation could mean IPOs face tougher times ahead. If wealthy buyers stay cautious, smaller investors might also hesitate. But there’s hope.
The IPO pipeline remains strong, with nearly 70 companies waiting for SEBI approval. If market sentiment improves, HNIs may jump back in, reigniting demand.
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