More Than a Dozen Companies Prepare for Upcoming IPOs in the Next 3 to 6 Months
After a slow start to 2025, the Indian primary market is witnessing a resurgence, with more than a dozen companies preparing to launch their initial public offerings (IPOs) in the coming months. This revival is attributed to a stabilizing secondary market and easing geopolitical tensions, according to merchant bankers. Notable firms such as HDB Financial Services and National Securities Depository Ltd are among those set to tap into the capital markets, signaling a renewed investor interest.
Upcoming IPOs and Market Sentiment
A diverse range of companies is gearing up to enter the IPO market, including HDB Financial Services, a subsidiary of HDFC Bank, and National Securities Depository Ltd (NSDL). Other firms like Kalpataru, Rubicon Research, and All Time Plastics are also preparing to launch their public offerings. In total, companies such as Credila, SK Finance, and Paras Healthcare are among those that have received clearance from the Securities and Exchange Board of India (Sebi) to proceed with their IPOs. These firms aim to raise funds to support various initiatives, including capital expenditures, repayment of debts, and general corporate purposes.
Despite the promising outlook, the overall IPO activity in 2025 has been relatively subdued. Only 16 companies have launched public issues so far, a significant drop from the 29 IPOs recorded during the same period last year. This slowdown is largely attributed to ongoing volatility in the equity market, influenced by both global and domestic factors. However, the recent launch of six IPOs last month, including that of Schloss Bangalore, which owns the luxury hotel chain The Leela, indicates a potential turnaround.
Investor Cautiousness Amid Market Volatility
The cautious start to 2025 reflects a broader sentiment among investors, who are navigating uncertainties in the global economy and domestic market fluctuations. Pranjal Srivastava, a partner in investment banking at Centrum Capital, noted that while the pipeline for IPOs remains strong, both issuers and investors are adopting a wait-and-see approach. He emphasized that many companies are still awaiting regulatory approvals and that the momentum for filing Draft Red Herring Prospectuses (DRHP) continues, similar to last year.
As of now, 65 companies have received final observations from Sebi, while another 65 are still awaiting clearance. This regulatory step is crucial for companies before they can launch their public issues. The cautious sentiment among investors is expected to gradually shift as market conditions stabilize, potentially leading to increased IPO activity in the latter half of the year.
Looking Ahead: Optimism for the Second Half of 2025
Despite the slow start, there are optimistic projections for the second half of 2025. Saahil Kinkhabwala, director of investment banking at Monarch Networth Capital, expressed confidence that a robust set of companies is preparing to launch their public issues. He highlighted a growing appetite among investors for attractively priced IPOs, which could drive renewed interest in the market.
The previous year, 2024, was particularly strong for the IPO market, with 91 maiden public issues raising a total of Rs 1.6 lakh crore. This surge was fueled by robust retail participation and a resilient economy. As the market begins to stabilize, experts believe that the second half of 2025 could see a significant uptick in IPO activity, reflecting a return of investor confidence and a more favorable economic environment.
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