IPO Party Expected To Continue Into 2025 As Big Issues Line Up, Says Pranav Haldea

The IPO market in India is set to maintain its strong momentum into 2025, building on a record-breaking 2024, according to Pranav Haldea, managing director of PRIME Database.

“Primary markets are essentially a function of the secondary market. With a broadly bullish sentiment in the secondary market through most of 2024, we are hopeful this will continue into 2025 as well,” he said.

Haldea highlighted 2024 as a standout year for IPOs. “We had 91 mainboard IPOs, the highest since 2007, raising Rs 1.6 lakh crore—the highest amount ever,” he noted. This growth was driven by a robust confluence of demand and supply. “We also saw 172 companies filing offer documents, the highest ever, and many more are in the pipeline,” he added.

As of now, 28 companies with SEBI approval are planning to raise Rs 46,000 crore, including names like National Securities Depository Ltd., Ather Energy Ltd., etc. In addition, 79 companies are awaiting SEBI approval to raise Rs 1.3 lakh crore. “Cumulatively, we are looking at Rs 1.9 lakh crore in IPOs, and this doesn't include the companies that will file in the coming months,” Haldea said.

He pointed out the strong performance of IPOs in recent years. “In 2024, IPOs delivered an average return of 47%. For 2023, it was 96%, and for 2022, it was 116%,” he said. Over the last 4-5 years, IPOs have not only provided solid listing gains but also sustained strong performance in the long term.

Initial public offerings in 2024 saw the country's biggest-ever listing, with Hyundai Motor Co.'s local unit raising Rs 27,870.1 crore. Food-delivery firm Swiggy Ltd. and NTPC Green Energy Ltd. topped Rs 10,000 crore.

Further, the IPO subscription ratios have been exceptionally high this year, with Vibhor Steel Tubes Ltd. seeing an impressive subscription of 320 times. Meanwhile, offerings like KRN Heat Exchanger and Refrigeration, Manba Finance, and Gala Precision Engineering were each subscribed over 200 times.

Haldea emphasised the importance of due diligence for investors. “If you're buying IPOs for listing gains, you can look at metrics like GMP. But for the long term, you need to study the business, promoters, financials, and corporate governance,” he advised.

He also stressed that post-listing, IPO companies are subject to market dynamics. “The day after listing, an IPO company becomes like any other listed entity whose shares will fluctuate based on developments and fundamentals,” Haldea said.

The major IPOs in 2025 include those to be launched by LG Electronics India Pvt., Tata Capital Ltd., Ather Energy Ltd., Zepto (operated by Kiranakart Technologies Pvt.), BlueStone Jewellery and Lifestyle Pvt., and Anand Rathi Share and Stock Brokers Ltd., among others.