IPO market 2025: Companies rush to file for IPOs despite weak market

Mumbai: Although the dry spell in the initial public offering (IPO) market is yet to end, preparations for equity fundraising remain in full swing. Over the past three days alone, 14 companies filed their draft prospectuses with the Securities and Exchange Board of India (Sebi).

The rush comes as companies aim to meet the deadline for submitting documents along with their audited financial statements for the quarter ended September 30, 2024.

This surge in draft filings signals a strong pipeline of upcoming IPOs, even amid prevailing market uncertainties. So far, 52 companies have secured Sebi approval for their public issues, while a total of 65 firms have submitted draft IPO papers to the market regulator.

India’s IPO market has been at a standstill since February due to a slump in stock prices, weak investor sentiment, and the poor performance of IPOs listed in last one year. As a result, many companies have put their share sale plans on hold. So far in 2025, only nine companies have launched IPOs, raising ₹15,723 crore, a stark contrast to the ₹1.6 lakh crore raised by 57 companies in 2024, according to primedatabase.com.

“The rush in DRHP filings on March 31 stems from the deadline, as audited financials for the period ending September 30 remain valid until then,” said Ranvir Davda, co-head of Investment Banking, HSBC Securities. “Also, many companies are gearing up for IPOs, betting on a rebound in secondary market sentiment soon.”

The 14 companies that filed on March 31 include Advance Agrolife, Anand Rathi Share and Stock Brokers, Ardee Engineering, ESDS Software Solution, Gujarat Kidney and Super Speciality, Jain Resource Recycling, Om Freight Forwarders, Pace Digitek, Park Medi World, Prozeal Green Energy, Runwal Enterprises, SIS Cash Services, Swastika Infra and Tea Post.On September 30 last year, during a peak in the secondary market, 15 companies registered their IPO documents, contributing to a record 41 filings in a single month.Bankers note that Indian corporates remain optimistic about growth and are exploring expansion opportunities and strategic acquisitions.

“The IPO market’s dry spell is expected to end soon, driven by a stabilising secondary market,” said Amit Ramchandani, CEO & head of investment banking at Motilal Oswal Financial.

“A strong business outlook and steady domestic liquidity are driving many companies to accelerate their IPO plans. With the correction in the secondary market, issuers are also aligning with more realistic valuations for their businesses,” he added.

Among the larger companies that filed DRHPs on Monday is Jain Resource Recycling, a nonferrous metal recycling business planning a Rs 2,000-crore IPO.

Mumbai-based real estate developer Runwal Enterprises has submitted its DRHP for a Rs 1,000 crore IPO, while stockbroking firm Anand Rathi Share and Stock has filed for a Rs 745 crore offering.

Additionally, Bengaluru-based Pace Digitek has filed its DRHP with the capital markets regulator to raise Rs 900 crore through a public issue. The second half of FY26 could witness a wave of IPOs, with market participants anticipating record fundraising through public issues. Companies such as Tata Capital, HDB Financials, ICICI Prudential AMC, Lenskart, Manipal Hospital, and PhonePe are among those planning $1 billionplus IPOs in the coming months.