IPO Boom Ahead! Over 1,000 public offers to hit primary market in next two years: Niveshaay Investment

The Indian primary market is all set to witness nearly 1,000 new initial public offerings (IPOs) across various sectors in the next two years, as per a report by Niveshaay Investment Advisors (a smallcase manager).

“India’s IPO market is set for a dynamic year in 2025, this influx of public offerings reflects the strong growth in India’s capital markets and offers exciting investment opportunities. Rising consumption and broader economic growth will keep the IPO market buzzing,” the report said.

However, Association of Indian Bankers in India (AIBI) forecasts 1,000 IPOs in the next two fiscal years.

Companies planning to go public

India’s IPO market is gearing up for a blockbuster year, with several major companies preparing to go public. Telecom giant Reliance Jio which is set to launch its highly anticipated IPO with an issue size of ₹8 lakh crore.

Another significant listing is LG Electronics India, which plans to raise ₹15,000 crore through an offer-for-sale, allowing existing shareholders to offload their stakes while attracting new investors.

In the electric mobility sector, Ather Energy, is targeting an IPO worth ₹4,500 crore. With the growing demand for sustainable transportation, this listing could boost the company’s expansion and innovation efforts.

Meanwhile, the quick commerce space is also witnessing excitement, as Zepto is aiming for a valuation exceeding $1 billion in its upcoming public offering.

The infrastructure and consumer electronics sectors are not far behind, with JSW Cement filing for an IPO worth up to ₹4,000 crore, a move that could help strengthen its market presence amid rising demand for construction materials.

Additionally, NSDL, a key player in India’s financial services sector, is looking to raise ₹3,000 crore through an offer-for-sale. Lastly, audio and wearable brand boAt is preparing for a ₹2,000 crore public listing, reflecting the growing investor interest in the booming consumer electronics market.

Impact of big IPOs on market liquidity

The report further explains that the impact of a large IPO on market liquidity depends on its size, investor participation, and overall market conditions.

In a highly liquid market, fresh inflows may offset liquidity absorption, minimizing disruptions. However, in tighter liquidity conditions, institutional investors like Mutual Funds and FIIs often rebalance portfolios to participate, reducing secondary market activity and tightening liquidity further, it said.

Post-listing, liquidity typically returns as investors reinvest gains or adjust holdings based on price movements and earnings performance. A successful IPO can boost sentiment and attract fresh liquidity, while an underperforming one may lead to risk aversion and further liquidity constraints.

“While many investors get caught up in the frenzy, oversubscribed IPOs often list at inflated prices. In last decade, studies have highlighted that over 70% of Indian IPOs tend to be underpriced initially, delivering positive short-term returns. However, these returns often do not sustain in the long run, especially when benchmarked against broader market indices. Recognizing this performance disparity, we see a unique opportunity to create value. Our plan is to identify promising IPOs and develop a targeted portfolio to capitalize on their growth potential,” said Arvind Kothari, smallcase manger & founder of Niveshaay.

In 2024, Hyundai Motor India’s ₹27,870 crore IPO—India’s biggest ever—attracted massive investor interest, showing strong confidence in the Indian auto industry.

Swiggy’s ₹11,327 crore IPO drew strong demand from institutional and retail investors. Bajaj Housing Finance’s ₹6,500 crore IPO, oversubscribed 64 times, listed with a 136% gain, delivering exceptional returns to early investors.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.