Six-and-a-half hours. That’s all it took for LG Electronics India Ltd.’s $1.3 billion initial public offering to be fully sold on Oct. 7, marking the fastest take-up in 17 years among major Indian IPOs.

It’s offerings like LG’s, the nation’s third biggest for this year, that have made India one of the world’s hottest IPO venues, with total proceeds hurtling toward last year’s record tally of $21 billion.

Yet the current listings wave isn’t just about volumes. It’s also about who’s buying these new stocks.

A rapidly expanding pool of money from domestic mutual funds, insurers and millions of retail investors is now dominating the IPO space, showing an increased ability to absorb large share sales. That’s reducing the reliance of India’s equity capital market on foreign funds, spurring a

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