SOURCE : NEW18 NEWS
Last Updated:May 21, 2025, 17:20 IST
SEBI data shows that over 75 companies have filed IPO documents in the first five months of this year, signaling a strong pipeline of upcoming market listings
Major sectors leading the upcoming wave of IPOs include technology, renewable energy, engineering, pharma, manufacturing and consumer services. (Representative/Shutterstock)
After a period of relative calm, the IPO market is set to heat up again. Over 150 companies are preparing to go public, offering fresh investment opportunities. With nearly 200 IPOs expected soon, investors may see this as the right time to recover idle funds, including those lent without interest.
An IPO, or Initial Public Offering, allows a company to sell its shares to the public for the first time to raise capital. According to merchant bankers, in the next 5-6 months, 150 to 200 companies are expected to file their Draft Red Herring Prospectus (DRHP), signalling promising opportunities for investors.
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The Securities and Exchange Board of India (SEBI) data reveals that over 75 companies have already filed IPO documents in the first five months of this calendar year. Experts anticipate that this number could double in the second half of the year.
Mahaveer Lunawat, Chairman of the Association of Investment Bankers of India (AIBI), noted that the IPO market is gradually gaining momentum, with more than 200 filings expected in the coming quarters. This surge indicates growing confidence among company promoters, improving liquidity in the domestic market, and a favourable economic environment.
Major sectors leading the upcoming wave of IPOs include technology, renewable energy, engineering, pharma, manufacturing and consumer services. These sectors are expected to attract significant investor interest and help companies enhance their valuations.
Examining month-wise data, January 2025 was the most active month for IPO filings, with over 25 companies submitting their DRHPs. February and March saw a decline, with 13 and 10 filings, respectively, due to market instability. The Sensex experienced a 5.5% drop in February but recovered in March. April saw a 3.7% increase in the Sensex, with 20 companies filing their documents. So far, May has seen over half a dozen IPO filings, including notable companies like Canara HSBC Life Insurance and Canara Robeco Asset Management. According to Prime Database, approximately 70 companies have received SEBI approval and could enter the market soon.
Prateek Lunkar, Managing Director of Axis Capital, stated, “The IPO market will be initially cautious but is expected to open up for more companies soon. If the market remains stable, the second half of the year could be very favourable for IPOs.”
In 2024, 91 companies raised over Rs 1.60 lakh crore through IPOs, while ten companies have raised a total of Rs 18,704 crore till April, 2025.
- First Published:
May 21, 2025, 17:20 IST