Kolkata: The primary markets could be heading for a deluge of new issues with Indian companies lining up IPOs that could mop up as much as $2.4 billion, or about Rs 20,500 crore, reports stated. Investment bankers are interpreting the development as the market coming out of the shadows of the global trade-related uncertainty following US President Donald Trump’s retaliatory tariff and geopolitical tension in different regions.
That amount would mark the strongest month since December and would follow a robust $2 billion raised in June, though most of that was raised by one company, HDB Financial Services.
The calendar year of 2024 was the peak in the IPO market of this country when as much as $20.5 billion was mopped up from the market. It was also the year when the post-Covid bull run peaked. The Indian IPO market was second only to the US. Investors in the country crowded both the primary and secondary market in droves in search of inflation-beating gains. Analysts had thought 2025 will be another bumper year in the primary market but the tariff whiplash of the US President, Israel-Iran conflict and Pakistan-India tension impact it significantly.
PRIME Database figures suggest that companies have 143 IPOs in different stages of planning that amount to a total of $26 billion and as many as 73 have been shown the green light by the regulator.
In May, this year’s biggest IPO so far was successfully launched by HDB Financial Services, a subsidiary of the country’s biggest private sector lender HDFC Bank. Among the prominent names that are in the pipeline to launch new issues are Hero Motors, National Securities Depository Ltd (NSDL), education loan provider Credila Financial Services, surveillance firm Aditya Infotech and power-transmission-goods maker M&B Engineering. Hero Motors has filed draft Red Herring Prospectus with the capital markets regulator to raise Rs 1,200 crore.
Quoting LSEG data, media reports stated that this year too, India continues to be the world’s second new issue market, having raised $5.86 billion, which constitutes 12% of the total IPO proceeds globally.
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