The enthusiasm for businesses going public is still strong, with an IPO pipeline worth over Rs 1.5 lakh crore scheduled for the next year, despite the Indian market experiencing severe volatility after an 18-month dream run.
34 firms have already obtained the necessary Securities and Exchange Board of India (SEBI) approval for initial public offerings (IPOs) in 2025, with a total goal of Rs 41,462 crore. In addition, 55 businesses that hope to raise roughly Rs 98,672 crore are awaiting regulatory permission. A business has a year from the date of SEBI approval to start an initial public offering (IPO).
In 2024, foreign investors purchased over Rs 1.11 lakh crore in main markets and sold over Rs 1.02 lakh crore in secondary markets.
According to data from Prime Database, the healthy pipeline follows a successful 2024 in which 75 Indian firms raised over Rs 1.5 lakh crore through mainboard IPOs. Compared to the Rs 49,435 crore raised through 57 initial public offerings (IPOs) in 2023 and the Rs 59,301 crore raised through 40 IPOs in 2022, this year sets a new milestone.
Strong market performance has led to a record-breaking spike in IPO draft filings. After a strong 20% rise in 2023, the Sensex and Nifty have both increased by around 13% year-to-date in 2024. The BSE MidCap and BSE SmallCap indices, on the other hand, have outperformed, rising 30% in 2024 and an astounding 45% in 2023.
In the meantime, the pipeline contains well-known brands such as Hero Fincorp (Rs 3,600 crore), JSW Cement (Rs 4,000 crore), Hexaware Technologies (Rs 9,500 crore), Ather Energy (Rs 4,500 crore), Dr. Agarwal’s Health Care (Rs 3,500 crore), HDB Financial Services (Rs 12,500 crore), LG Electronics India (Rs 15,000 crore), and NSDL (Rs 4,500 crore).
The long-term fundamentals of the Indian market are still solid, according to experts, despite short-term challenges including geopolitical tensions, poor corporate profits, a slowing economy, and ongoing foreign outflows in secondary markets. Well-established businesses with high profitability and obvious business visibility are anticipated to get significant subscriptions, they believe, whereas poor-quality IPOs may have difficulties.
