After a subdued opening to 2025, India’s primary equity market is showing clear signs of revival, with more than a dozen companies preparing to launch their initial public offerings (IPOs) over the next three to six months. Merchant bankers attribute this resurgence to a stabilizing secondary market and easing geopolitical tensions. Among the companies set to tap the capital markets are HDB Financial Services, National Securities Depository Ltd (NSDL), Kalpataru, Rubicon Research, and All Time Plastics. The funds raised will primarily support expansion plans, debt repayment, and general corporate needs. Despite the cautious start, analysts anticipate a robust IPO pipeline in the second half of the year.
Revival Gathers Momentum
Several companies are moving ahead with IPO plans, indicating renewed confidence in the market’s underlying strength. HDB Financial Services, a subsidiary of HDFC Bank, plans a fresh issue of equity shares worth Rs. 2,500 crore along with an offer for sale of Rs. 10,000 crore by the parent company. NSDL, meanwhile, will offer 5.01 crore shares in its IPO, a reduction from its earlier proposed 5.72 crore shares.
Merchant bankers note that other firms, including Rubicon Research, Kalpataru, Paramesu Biotech, and All Time Plastics, have received clearance from the Securities and Exchange Board of India (Sebi). Their capital raising initiatives aim to finance capacity expansion, strengthen balance sheets, and fund future growth.
Shifting Investor Sentiment
Despite these positive developments, the broader IPO activity in 2025 remains subdued compared to the previous year. So far, only 16 companies have launched public issues, down from 29 in the same period of 2024. Market watchers attribute this slowdown to persistent volatility in both global and domestic equity markets.
Nevertheless, industry experts remain optimistic. Saahil Kinkhabwala, Director, Investment Banking at Monarch Networth Capital Ltd, believes that investor appetite remains strong for well-priced IPOs, and expects a surge in activity in the second half of the year.
Strong Pipeline Offers Optimism
According to Pranjal Srivastava, Partner, Investment Banking at Centrum Capital, the slow start to 2025 reflects investor caution amid ongoing economic uncertainties. However, he points out that a robust pipeline remains intact, with 65 companies already receiving final observations from Sebi and an equal number awaiting regulatory clearance.
Srivastava anticipates that both issuers and investors will re-enter the market more aggressively as stability returns and global economic headwinds ease. This cautious optimism is underscored by the steady flow of draft red herring prospectus (DRHP) filings, signaling that companies are positioning themselves to capitalize on the market’s eventual rebound.
Key Drivers and Future Outlook
India’s IPO market had a blockbuster year in 2024, with 91 maiden public issues collectively raising Rs. 1.6 lakh crore. This momentum was driven by robust retail participation, a resilient economy, and substantial private capital expenditure. Though 2025 began on a muted note, the latest wave of IPO filings suggests that the underlying growth story remains intact.
HDB Financial Services’ IPO is particularly significant. Currently, HDFC Bank holds a 94.36 per cent stake in HDB, and the fresh issue proceeds will help bolster its Tier-I capital base, enhancing its capacity to expand lending activities. Given its classification as an upper-layer non-banking financial company (NBFC) under RBI norms, HDB is mandated to list by September 2025.
Similarly, NSDL has received an extension from Sebi until July 31, 2025, to complete its listing, reflecting regulatory support for upcoming IPOs.
Conclusion
Despite the rocky start to 2025, India’s IPO landscape is set for a resurgence. As macroeconomic conditions stabilize and investor sentiment improves, a healthy pipeline of offerings is expected to gain traction in the second half of the year. This promises fresh opportunities for investors and underscores the growing depth and maturity of India’s capital markets.
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