IPO Frenzy In 2025: Rs 1.5 Lakh Crore Public Issues In Pipeline For Next Year, 34 Companies Get SEBI Nod

Despite recent turbulence in Indian stock markets after an 18-month bull run, the momentum for companies entering the public markets remains robust. The IPO pipeline for 2025 is poised to surpass Rs 1.5 lakh crore.

IPO Lineup for 2025
As of now, 34 companies have secured the green light from the Securities and Exchange Board of India (SEBI) for IPOs in 2025, aiming to raise a cumulative Rs 41,462 crore. Meanwhile, 55 firms are awaiting regulatory approval to collectively raise Rs 98,672 crore. Once approved, companies have a one-year window to launch their IPOs.

The list of prominent upcoming IPOs includes:
HDB Financial Services: Rs 12,500 crore
LG Electronics India: Rs 15,000 crore
NSDL: Rs 4,500 crore
Dr Agarwal's Health Care: Rs 3,500 crore
Hexaware Technologies: Rs 9,500 crore
Ather Energy: Rs 4,500 crore
JSW Cement: Rs 4,000 crore
Hero Fincorp: Rs 3,600 crore

Additionally, high-profile players like Zepto, Flipkart, HDFC Credila, and Indira IVF are expected to file draft red herring prospectuses (DRHPs) soon. Reports suggest that Flipkart, Zepto, and HDFC Credila each plan to raise over $1 billion, while Indira IVF aims to secure $400 million.

2024: A Year for IPOs
The momentum for IPOs in 2025 comes on the back of an exceptional 2024. According to the Prime Database, 75 Indian companies raised over Rs 1.5 lakh crore through mainboard IPOs in 2024, setting a new benchmark. This far exceeded the Rs 49,435 crore raised in 2023 from 57 IPOs and Rs 59,301 crore from 40 IPOs in 2022. A total of 143 DRHPs were filed with SEBI in 2024, nearly doubling the 84 filings in 2023 and 89 in 2022.

Investor Sentiment
Market experts believe the ambitious IPO targets for 2025 are achievable despite certain headwinds. So far in 2024, foreign investors have offloaded over Rs 1.02 lakh crore in secondary markets but bought more than Rs 1.11 lakh crore in primary markets. Domestic investor participation has been a significant stabilizing factor, driven by robust inflows into equity mutual funds and retail investments.

Market Performance
The stellar performance of Indian equity markets in recent years has been a catalyst for the IPO surge. In 2024, the Sensex and Nifty have gained nearly 13% year-to-date, following 20% gains in 2023.

Broader indices have outperformed significantly, with the BSE MidCap index climbing 30% and the BSE SmallCap index surging an impressive 45% in 2024. This bullish sentiment has emboldened companies to tap into the capital markets, despite intermittent market corrections and geopolitical uncertainties.

While the IPO pipeline is robust, short-term challenges loom large. Weak corporate earnings, geopolitical tensions, slowing global growth, and continued foreign outflows in secondary markets are key concerns. However, market analysts are optimistic about the long-term prospects.

With a pipeline brimming with high-profile names and a favourable market outlook, 2025 is poised to be another landmark year for IPOs in India. As the new year approaches, the stage is set for a slew of public issues that could reshape the market landscape, offering both opportunities and challenges for investors. Whether the IPO frenzy sustains its momentum will depend on market conditions, investor sentiment, and companies' ability to meet lofty expectations.