India’s IPO Resurgence, the capital markets are witnessing a significant revival in initial public offerings (IPOs), with over 150 companies currently in ‘DRHP-ready’ status, indicating their preparedness to launch public offerings upon receiving regulatory approvals. Merchant bankers anticipate that this number could potentially double in the next 5-6 months, reflecting renewed investor confidence and favorable market conditions.
A Diverse Pipeline of IPO Candidates
The surge in IPO activity spans various sectors, including renewable energy, hospitality, automotive, and defense technology. Notable upcoming IPOs include:
- CleanMax Enviro Energy Solutions: A renewable energy firm planning an IPO worth ₹4,000-₹5,000 crore by the end of 2025, aiming to support its growth initiatives .
- Schloss Bangalore (The Leela Hotels): Set to open its ₹3,500 crore IPO on May 26, 2025, with proceeds intended for debt repayment and expansion plans .
- Belrise Industries: An auto ancillary company looking to raise ₹2,150 crore to reduce debt and enhance operational efficiency (Currently open as of 21/05/2025 with GMP of 16%, Rs. 14-15/- per share).
- Tonbo Imaging: A defense tech startup planning to file its DRHP by August 2025, aiming to raise ₹800-₹1,000 crore for expansion .
- OfBusiness: A SoftBank-backed B2B commerce platform targeting a $750 million to $1 billion IPO in late 2025, with funds allocated for debt repayment and business growth .
Why there is India’s IPO Resurgence? Are Investor Sentiment and Market Dynamics the answers?
The India’s IPO Resurgence is attributed to buoyant (positive) secondary markets and a de-escalation of global geopolitical tensions (including India-Pakistan & China-US & talks between Russia-Ukraine), which have bolstered investor sentiment . Companies are keen to capitalize on these favorable conditions to access capital markets for funding expansion, reducing debt, and enhancing their market presence.
Additionally, the adoption of the confidential filing route by some companies allows them to gauge investor interest and market conditions discreetly before making public announcements, providing strategic flexibility in timing their IPOs .
vitt’s take..
(vitt – Where India Reads is a space for making Business and finance stories digestible and relevant to India’s digital generation.)
The current wave of IPO activity underscores the resilience and dynamism of India’s capital markets. For investors, this presents a plethora (wide range) of opportunities to participate in the growth stories of diverse sectors. However, it’s imperative to conduct thorough due diligence, considering factors such as company fundamentals, sectoral prospects, and valuation metrics before investing. As the IPO landscape evolves, staying informed and discerning will be key to making prudent investment decisions. Many of retail investor go with these IPOs only for listing gains (selling shares as soon as the company hits market), but often it is a risky bet as the GMP are not certain and are subject to many external uncertainties.
(Disclaimer:- Making any investment related decisions is subject to market risk, So kindly take advice from your financial advisor or from any authorized individual pertaining to your financial matters, this above content is only for educational purposes.)