Investors are eagerly anticipating a wave of initial public offerings (IPOs) set to debut in 2025. Among the notable names on the horizon are NSE, NSDL, HDB Financial Services, BoAt, LG, Reliance JIO, JSW Cement, Ather Energy, Zepto, PhonePe, Tata Capital, and Flipkart. However, the current landscape shows a decline in mainboard IPOs due to market volatility, which has left both promoters and investment bankers adopting a cautious stance. They are closely monitoring critical factors that could shape the market’s future, including fluctuations in foreign institutional investor (FII) selling, the unpredictability of political policies, and tariff issues impacting Asian markets.
Market Sentiment and Recovery
Despite recent global market turbulence, the Nifty 50 has bounced back impressively, recovering 1,400 points, or 6.5%, from its March low of 21,964. While trade tensions and shifting U.S. policies have contributed to high volatility in equity markets worldwide, the Indian market has demonstrated notable resilience.
- Key Factors Influencing IPO Activity:
- Reduction in FII selling pressure
- Stability in global economic policies
- Positive shifts in market sentiment
Mohit Gulati, the Chief Investment Officer and managing partner at ITI Growth Opportunities Fund, shared insights into the current IPO sentiment. He noted that the 2025 IPO landscape is not just about raising capital; it reflects a strategic response to a rapidly evolving business environment. Companies are now emphasizing financial discipline, integrating innovative technologies such as artificial intelligence (AI), and addressing environmental, social, and governance (ESG) concerns to appeal to discerning investors.
Gulati remarked, “The upcoming IPO pipeline is robust. For successful launches, it’s crucial to maintain reasonable valuations that allow room for new investors. The trend has shifted away from speculative schemes; both retail and institutional investors are now more cautious after recent market setbacks. There’s a growing focus on sustainable and profitable growth rather than merely chasing expansion.”
Noteworthy Upcoming IPOs
LG Electronics India
LG Electronics India has recently received the green light from the Securities and Exchange Board of India (SEBI) to move forward with its IPO plans. The company aims to raise funds through an offer for sale of up to 10.18 crore equity shares, priced at a face value of ₹10 each. The IPO documentation was submitted to SEBI on December 6, 2024.
- Lead Managers for the Offering:
- Morgan Stanley India
- J.P. Morgan India
- Axis Capital
- BofA Securities India
- Citigroup Global Markets India
National Securities Depository Ltd (NSDL)
NSDL, the country’s largest securities depository, is making strides toward its highly anticipated ₹3,000 crore IPO. This offering will consist solely of an offer for sale (OFS), involving shareholders like the National Stock Exchange (NSE), IDBI Bank, and HDFC Bank. The NSE holds a significant 24% stake in NSDL. The organization is racing against time to finalize regulatory approvals, with deadlines approaching soon.
Tata Capital IPO
In a recent development, the Tata Group has selected approximately 10 investment banks to manage the imminent IPO of its financial services arm, Tata Capital, which is expected to exceed ₹15,000 crore. The non-banking financial services company is a subsidiary of Tata Sons. Reportedly, Tata Capital plans to submit its draft documents by the end of March or early April via a confidential pre-filing method.
boAt IPO
The popular consumer electronics brand boAt is preparing to file a Draft Red Herring Prospectus (DRHP) for its IPO, targeting a fundraising goal of ₹2,000 crore in the fiscal year 2025-26. The company is aiming for a valuation that could surpass $1.5 billion, although final figures are still under discussion.
JSW Cement IPO
JSW Cement, part of the JSW Group, has secured final approval from SEBI to raise ₹4,000 crores through its IPO. This includes a new issue of shares worth up to ₹2,000 crores alongside an OFS of the same amount from exiting shareholders.
As these companies prepare for their IPOs, the market’s direction remains contingent on stabilizing factors, which could lead to a robust resurgence of IPO activity in the near future.
