The IPO (initial public offering) market has shown a stark contrast amid volatility in broader equities, with the number of DRHP filings reaching record high and IPOs witnessing a low during the same time period. As per data analysed by Business Standard, around 85 companies filed DRHPs (Draft Red Herring Prospectus) with the Sebi from January to May this year. Of these, only 10 companies could launch IPOs within the same window.
However, 29 IPOs were completed during the same timeframe last year, while the number of DRHPs filed remains comparatively low. Bankers attributed the subdued IPO activity to policy uncertainty, Trump’s reciprocal tariffs fear, soft corporate earnings, valuation concerns, and a stronger dollar against the rupee.
Despite this slowdown, India’s primary markets continued to punch above their weight on the global stage as it secured nearly 22% share of global IPO activity in the first quarter of 2025, according to a report released by EY. It added that India remains a leading destination for companies seeking to go public, even amidst a backdrop of global market uncertainties.
“India’s IPO market continues to be a beacon of resilience and growth. The strong performance in Q1 2025, despite global uncertainties, highlights the robust fundamentals and investor confidence in our market. We are optimistic that this momentum will carry forward, driven by supportive policies and a dynamic economic environment,” said Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader, Indian member firm of EY global.
Six IPOs Expected in May
The IPO market is getting back on track with six main-board companies, including Schloss Bangalore -- owner of luxury hotel chain The Leela, are set to float their initial share-sales this month to collectively mobilise over Rs 11,000 crore, investment banking sources said on Monday.
Of the six firms, Borana Weaves and Belrise Industries already launched lately. The remaining four companies -- Schloss Bangalore Ltd, which operates Leela Palaces Hotels & Resorts, Aegis Vopak Terminals, Arisinfra Solutions Ltd and Scoda Tubes are expected to file their IPOs next week.
Together, these six companies are expected to raise Rs 11,669 crore.
This shift followed a remarkable 2024, in which 91 maiden public issues collectively raised Rs 1.6 lakh crore, driven by robust retail participation, a resilient economy, and booming private capital expenditure.
