In an early sign of revival investors and corporate confidence amid tariff tug war, seven corporates have ventured into primary market to raise ₹3,100 crore in next one week. Of the seven new public issues, six will be on the SME platform.

Since April, 24 companies have filed draft red herring prospectus and the market regulator SEBI is processing 48 applications are under process for final clearance.

Among the issues that are open for subscription, Ather Energy alone targets to raise ₹2,980 crore, while the remaining six companies will mop up ₹141 crore before May 7.

The IPO buzz is making a comeback on Dalal Street on the back of positive market momentum, strong liquidity and steady foreign inflows.

Investor appetite

Trivesh D, COO, Tradejini, said the increase in filings and listings, especially on both mainboard and SME platforms shows improving market sentiment and growing investor appetite for new offerings.

Many firms that had delayed IPO plans are now making the most of the opportunity to tap into revived investor interest, he said.

Investors should approach upcoming IPOs with caution and look beyond the buzz to understand the company’s fundamentals, valuation and earning potential before investing, he added.

Although last year was strong for the primary market, global unrest and foreign investor withdrawals over high valuation concerns dragged down the secondary market in September, leading to a gradual slowdown in IPO activity.

Making a comeback

Per the EY report, Hexaware Technologies issue was the largest raising $1 billion. However, the overall IPO activity in India saw a decline of about 20 per cent in March quarter compared to the previous year as investors sentiment turned weak with benchmark Sensex falling one per cent amid huge volatility.

In March quarter, 62 IPOs were listed on the NSE and BSE after raising $2.8 billion in proceeds.

Last year, corporates had raised a whopping ₹162,800 crore through 268 IPOs. The number of SME IPOs surged from 109 in 2022 to 235 in 2024 and mop-up jumped from ₹1,900 crore to ₹8,600 crore in the same period.

The possible rate cut by the RBI and government’s spending on infrastructure are expected to bring down cost of funding for corporates and boost domestic consumption.

Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader, Indian member firm of EY Global, said India’s IPO market continues to be a beacon of resilience and growth.

The strong performance in Q1 of 2025, despite global uncertainties, highlights the robust fundamentals and investor confidence in market, he said.

“We are optimistic that this momentum will carry forward, driven by supportive policies and a dynamic economic environment,” he added.

Published on April 29, 2025