PMS Managers Boost Pre-IPO Bets as Unlisted Equity Exposure Surges in September 2025

Mumbai, November 24: Portfolio management services (PMS) witnessed a notable shift in September, with managers increasing their allocation to pre-IPO and unlisted equities. Amid slowing investments in the listed markets, PMS strategies tilted towards private-market opportunities, reflecting growing investor appetite for high-potential unlisted assets.

According to the APMI Compendium, unlisted equity holdings in discretionary PMS portfolios jumped 63% month-on-month. This was the largest increase across the equity market.

Co-Investment Books Show the Same Trend

For concentrated IPO positions, PMS managers use Co-investment portfolios. In September, these portfolios also recorded growth, with their AUM rising 3% month-on-month. One of the main reasons for this rise was a 7% rise in the allocations of unlisted equities.

Mutual Funds Exit Pre-IPO Space

The increase in investment by PMS Managers in pre-IPO rounds comes due to a new rule. As per SEBI’s new rule, mutual funds can not participate in pre-IPO rounds anymore. Mutual fund schemes may invest only in securities that are listed or are classified as “to be listed”. Because of this, PMS Managers have been able to invest more in pre-IPO rounds.

A Busy Primary Market Providing More Opportunities

The timing of increased investment by PMS Managers comes at a time when the Indian market is going through its busiest IPO activity in recent years. A number of IPOs have provided good returns to investors through listing and short-term gains.

With the absence of mutual funds, it is likely that PMS investment in pre-IPO rounds will increase in the future.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations