29 companies have already received Sebi's approval to raise a cumulative Rs 46,250 crore. Another Rs 1.18 lakh crore worth of IPOs are waiting for the markets regulator's approval to go public
After unprecedented fundraising via initial public offerings (IPOs) in 2024 following a slowdown in the previous year, primary markets are set to be roaring in 2025 too.
Photo Imaging: Chaitanya Dinesh Surpur
As businesses are embracing transformation, adapting new strategies to align with the shifting demands of investors, primary markets are expected to stay red hot in 2025 with IPOs opening the door to new opportunities for such companies. Adding to that is the gushing liquidity in secondary markets that companies are tempted to tap into.
After unprecedented fundraising via initial public offerings (IPOs) in 2024 following a slowdown in the previous year, primary markets are set to be roaring in 2025 too. Investors are expected to show increasing willingness to allocate capital toward IPOs as markets are emerging from election-related uncertainties. However, slower economic conditions and concerns of steep valuations may pose a threat to this hyper-active IPO market in India.
“Looking ahead to 2025, investor demand for fundamentally sound companies with a proven track record of good corporate governance remains robust. With market liquidity at an all-time high and investors hungry for new avenues through which they can deploy capital, we can expect to see larger IPOs,” says Gaurav Sood, managing director and head, equity capital markets, Avendus Capital.
A clutch of 29 companies have already received Securities and Exchange Board of India (Sebi) approval to raise a cumulative ₹46,250 crore via IPO. Another ₹1.18 lakh crore worth IPOs are waiting for the markets regulator’s approval to go public, shows data by Prime Database.
Sood explains that India’s primary market is further buoyed by a strong network of entrepreneurs, backed by marquee private investors, and a growing preference among strategic investors to view IPOs as a viable exit strategy. “The liquidity and premium valuations in Indian markets coupled with strong investor demand are driving global parent companies of Indian subsidiaries to consider India as a preferred listing destination,” he adds.
(This story appears in the 24 January, 2025 issue of Forbes India. To visit our Archives, click here.)