WILL IPOs BOOM AGAIN IN 2025?

In the coming year, as many as 32 companies have Sebi approval to raise ₹42,000 crore, while another 55 looking to raise ₹1.15 lakh crore are awaiting approval

- PRANAV HALDEA

PRIMARY MARKET activity always follows a buoyant, or at least, a stable secondary market, albeit with a lag. Ever since Covid-19 struck in March 2020 and indices hit significant lows, the market sentiment has bounced back with a vengeance, leading to a secular run-up, with the indices now almost at all-time highs, despite the recent correction.

Commensurately, there has been significant activity in the IPO (initial public offering) market as well. While 2020 saw ₹26,612 crore being raised through main-board IPOs, the good run continued in 2024 with an all-time high of ₹1,52,629 crore being raised (as of December 13).

From various accounts, the Indian secondary market seems poised to continue its stellar run on account of political stability, several favourable macroeconomic indicators, and abundant liquidity from both domestic and foreign investors. The impact of this shall be felt in the primary market too. The pipeline is incredibly strong; as many as 32 companies have Sebi approval to raise ₹42,000 crore, while another 55 companies looking to raise ₹1.15 lakh crore are awaiting approval from Sebi.

New filings are also likely to see a significant spurt in the coming months. Importantly, unlike in the recent years when a large number of companies going for IPOs were from the BFSI (banking, financial services, and insurance) sector, most IPOs in the last two years and also those in the pipeline span multiple sectors.