Fresh IPOs likely to flood Dalal Street: Time to ride the wave?

After a quiet start to the year, the IPO market on Dalal Street is slowly coming back to life. In the first quarter of the current financial year, there has been a steady rise in initial public offerings (IPOs), showing signs that the primary market may be gaining momentum once again.

In the third week of May, two IPOs, Belrise Industries and Borana Weaves, opened for bidding. Four more are lined up to open in the last week of May. These include Scoda Tubes, Prostarm Info Systems, Leela Hotels (Schloss Bangalore Limited), and Aegis Vopak Terminals.

So far, the year has been lukewarm in comparison to 2023, but activity is picking up. Several companies are now filing draft red herring prospectuses (DRHPs) with the Securities and Exchange Board of India (Sebi), hinting at a growing interest in public listings.

Some of the firms that have already filed papers with Sebi include Prestige Hospitality Ventures, Canara HSBC Life Insurance Company, and Urban Company.

Reports also suggest that companies like InCred, Qure.AI, Duroflex, Groww, and Shiprocket are preparing to enter the market as well.

BIG NAMES ON THE WAY

A few large and well-known companies are expected to launch their IPOs in 2025. Reliance Jio Infocomm may come out with a public issue worth Rs 40,000 crore. If this happens, it could become the biggest IPO in Indian history.

Other big names such as Tata Capital, PhonePe, and Zepto are also expected to go public. In the financial sector, HDB Financial Services and Hero FinCorp are planning to raise Rs 12,500 crore and Rs 3,668 crore, respectively.

LG Electronics India, which has already received approval from Sebi, is getting ready for an offer for sale worth Rs 15,000 crore. However, the timeline is still not very clear.

WHY THE SUDDEN PICKUP?

Experts believe that the rise in IPO activity is due to a mix of factors, including better market conditions and strong investor interest.

“What we are seeing is a steady revival in IPO activity, not so much a comeback, but more of a continuation after a brief pause,” said Trivesh D, Chief Operating Officer at Tradejini.

“The pickup in DRHP filings — 85 in 2025 alone, which is a decade high — reflects companies’ confidence in the current environment. Liquidity, foreign inflows, and overall market resilience naturally create a conducive backdrop for fundraising at fair valuations.”

He also added that India’s wider economic picture, steady growth, focus on infrastructure, and a strong consumer market are drawing both local and foreign investment.

“That is bringing both domestic and global capital to the table, making it an opportune moment for companies to consider listing, whether on the mainboard or SME platforms,” he said.

SHOULD INVESTORS INVEST?

With more IPOs entering the market, many investors are wondering if this is the right time to invest.

“We would say it depends,” said Trivesh D.

“In 2025 so far, 8 out of 12 mainboard IPOs and 37 out of 67 SME IPOs gave listing gains. But not every IPO delivers. It is crucial for investors to look beyond the noise, understand the business model, check the pricing, and think long-term before subscribing.”

Echoing a similar view, Kranthi Bathini, Equity Strategist at WealthMills Securities Pvt Ltd, said that investors must be careful.

“After the brief pause recently and also as the market resumed its bull rally and after touching the range of 25,000 levels, there is a heightened activity that is coming back into the primary markets again,” he said.

However, he warned that most IPOs from the last year have seen their prices drop after listing. “Majority of the IPOs that came in the last one year, 90% of the IPOs have touched the lows after rising and they traded below their listing and IPO prices,” he mentioned.

“So one needs to be very selective in terms of selecting IPOs if they want to go for listing gains. But for longer-term serious investing, one needs to understand the business models and valuations thoroughly before taking any decision with respect to primary market investing,” Bathini added.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)