PMS Investors Shift Toward Pre-IPO Opportunities as Unlisted Equity Jumps 63%

The Indian market has been buzzing with conversations around PMS, unlisted equity, and pre-IPO deals. While the Nifty has stayed rangebound in recent sessions, one segment has moved sharply and unexpectedly—private-market allocations in portfolio management services.

Through the lens of market sentiment, this shift feels like a natural response to the changing dynamics in the broader equity landscape. And nowhere is this trend more visible than in the sudden rise in interest around pre-IPO opportunities.

Market Performance: Private Markets Take the Spotlight

In September 2025, the PMS industry quietly recorded one of its strongest signals of changing investor appetite.

At a time when listed markets were moving sideways, PMS flows began tilting toward private-market exposure, especially into unlisted companies preparing for IPO.

The standout data point was the surge in unlisted equity allocations. This wasn’t a marginal rise—it was a sharp, clear jump that caught the attention of anyone tracking PMS flows.

Main News: Unlisted Equity Exposure Surges 63% in a Month

According to industry data, discretionary PMS portfolios saw unlisted equity exposure jump 63% month-on-month.

It remains a small portion of the overall equity mix, but the pace of the increase signals a structural shift in progress.

Co-investment books, which are often used to make concentrated pre-IPO allocations, also reflected the same pattern.

Here too, the numbers spoke clearly:

• Co-investment AUM: Up 3% MoM
• Unlisted equity within co-investments: Higher by 7% MoM

The steady growth in these pockets indicates a rising interest in early-stage opportunities, especially ahead of listing events.

Company Details & Regulatory Context: Why PMS Platforms Are Moving Toward Pre-IPO Deals

Behind this sudden rise lies an important regulatory shift.

Recent guidelines have restricted certain market participants from taking part in pre-IPO placements. These placements are not classified as “to-be-listed,” unlike anchor allocations in a public issue.

As a result, only entities allowed access to unlisted equity—and PMS platforms fall into this category—can now participate more actively in pre-IPO exposure.

With a busy IPO pipeline, steady demand for new listings, and the Nifty seeing strong inflows in recent months, PMS managers appear to be using this window to build positions before companies hit the public markets.

For many investors in this space, pre-IPO opportunities offer:

• Higher certainty of allotment
• Access to companies ahead of their listing
• The ability to participate in private-market growth cycles

These factors have collectively contributed to the sharp increase in allocation numbers.

Summary: PMS Investors Lean Into Pre-IPO Bets as Market Dynamics Evolve

The month’s data sends a clear message—PMS investors are leaning deeper into pre-IPO and unlisted opportunities, even as broader market flows shift.

Key takeaways shaping this shift:

• Unlisted equity exposure in PMS portfolios jumped 63% MoM.
• Co-investment AUM grew 3% MoM, driven by 7% MoM rise in unlisted allocations.
• Regulatory changes have reshaped access to private deals.
• Strong IPO activity has created a favourable backdrop.

In a market where the Nifty, PMS, and IPO segments often move in different rhythms, the rise of unlisted equity marks a notable trend—one that could influence allocation patterns in the months ahead.