Mumbai: India’s IPO market, which had been quiet for the past few months, is now showing signs of a strong revival. Public issues worth around Rs 1.4 lakh crore are expected to be launched soon. This is based on the approvals given by the Securities and Exchange Board of India (SEBI) to 72 companies.
Along with this, there are 68 more companies that are still waiting for SEBI’s approval. These companies plan to raise another Rs 95,000 crore through public offerings. Together, a total of 140 companies may raise up to Rs 2.35 lakh crore from the public markets in the coming months.
The IPO market had slowed down earlier due to unstable stock markets and weak performance of some big IPOs. For example, the IPO of electric vehicle company Ather Energy gave only 2.18 per cent returns after listing. Other companies like Aegis Vopak and Schloss Bangalore (part of The Leela brand) saw a drop of 6 per cent after listing. The listing of Skoda Tubes remained flat with no gains.
In the first five months of 2025 (January to May), about 90 companies have submitted draft papers to SEBI for an IPO. January saw the highest activity with 28 draft filings. February had 15 filings, March had 11, April had 24, and May has seen 12 filings so far.
One of the main reasons for the poor IPO performance has been the market volatility. The Nifty index has stayed nearly flat over the past six months. In the past one month, it has given just about 1 per cent returns.
The Indian stock market has been affected by global events in 2025, including geopolitical tensions and new tariff policies. Despite these issues, the rise in draft IPO filings suggests that companies are hopeful for better market conditions in the near future.
If market conditions improve, the IPO market may see strong activity ahead, with many companies ready to raise funds from investors.
(With agency inputs)
