Investors keeping a close eye on stock market trends may find this week particularly quiet. For the first time in several months, Dalal Street is experiencing a complete halt in Initial Public Offerings (IPOs), leaving both mainboard and SME listings absent. This marks the first week without an IPO since January 2024.
A Historic Low in IPO Activity
The current lull in IPOs is not just a fleeting moment; it reflects a growing trend. March 2025 has now set a record as the first month in over a year without any mainboard IPOs— a phenomenon not seen since February 2023. So, what’s behind this sudden freeze, and when can we anticipate the return of the IPO excitement?
Reasons for the IPO Drought
This unexpected slowdown in the primary market has several underlying causes. A combination of global uncertainties, ongoing market corrections, and cautious sentiments related to potential tariffs from the U.S. President have dampened the outlook for primary market profits.
- Companies are opting to postpone their IPOs, waiting for more favorable conditions.
- Rising market volatility has left many investors on the sidelines, affecting overall confidence.
Future IPOs on the Horizon
While this week may lack IPO activity, a series of significant public offerings are set to make waves in the upcoming months. Here’s a glimpse of what’s on the horizon:
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Reliance Jio Infocomm is preparing for an ambitious IPO that could be the largest in India’s history, aiming to raise a staggering ₹40,000 crore at a valuation of around ₹10 lakh crore (approximately $120 billion). Although specific dates haven’t been disclosed, speculation points to a launch in Q2 or Q3 2025.
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Tata Capital is also gearing up, aiming to raise ₹15,000 crore through a mix of new shares and an offer-for-sale (OFS) from existing shareholders.
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PhonePe, the digital payments giant backed by Walmart, plans a high-profile listing at a valuation of $15 billion. The company has shifted its headquarters to India and enlisted top investment bankers to facilitate the IPO.
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Ather Energy, the second electric vehicle player in India after Ola Electric, has received approval from SEBI and aims to raise ₹3,100 crore through a fresh issue along with an OFS of 2.2 crore shares.
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Zepto, the fast-delivery startup, is also on track to file its Draft Red Herring Prospectus (DRHP) by April 2025, targeting to raise between $800 million and $1 billion.
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In the financial sector, HDB Financial Services and Hero FinCorp are preparing to raise ₹12,500 crore and ₹3,668 crore, respectively. Additionally, JSW Cement is expected to launch its own ₹4,000 crore IPO this year.
- LG Electronics India recently gained SEBI’s approval for a ₹15,000 crore IPO, which will consist of a pure OFS of over 10 crore shares from its parent company, marking a 15% stake dilution. With robust financials— a FY24 revenue of ₹21,352 crore and a profit of ₹1,511 crore— LG’s offering is poised to be a standout in the consumer electronics sector, although the launch timing may adapt to market sentiments.
Conclusion
While this week is devoid of IPOs, the future holds promise with an impressive lineup of offerings waiting to hit the market. Investors should keep a close watch on these upcoming IPOs, as they could signal the revival of the primary market in the near future.
