Mumbai: A Thriving Hub for Initial Public Offerings
Mumbai, often referred to as the financial capital of India, has recently witnessed a remarkable surge in investor interest, particularly in the realm of Initial Public Offerings (IPOs). The past week marked one of the busiest periods in the Indian market for IPOs, with five significant issues launched, all of which experienced robust demand, especially from institutional investors. This article delves into the details of these IPOs, the underlying market sentiment, and the implications for the future.
Record-Breaking Demand for IPOs
The IPOs launched during this bustling week included HDB Financial Services, Kalpataru, Ellenbarrie Industrial Gases, Sambhv Steel Tubes, and Globe Civil Projects. Collectively, these offerings garnered bids totaling over ₹1.85 lakh crore, nearly 12 times the ₹15,600 crore worth of shares available for sale. This overwhelming response underscores the growing appetite for equity investments among both institutional and retail investors.
HDB Financial Services: A Landmark Offering
At the forefront of this IPO wave was HDB Financial Services, which launched a ₹12,500 crore IPO—the largest public issue by a non-banking financial company in India. Closing on Friday, the IPO saw bids for 16.69 times the shares offered, amounting to a staggering ₹1.52 lakh crore. This level of demand is the highest recorded for billion-dollar Indian IPOs since Zomato’s issue four years ago. HDB Financial offered 130.4 million shares, while the demand soared to 2.18 billion shares.
The breakdown of bids revealed a strong preference among qualified institutional buyers (QIBs), who subscribed for 55.47 times the shares reserved for them. Retail investors also showed significant interest, bidding for 1.41 times their allotted portion, while the non-institutional category received subscriptions for 9.99 times.
Other Notable IPOs
Sambhv Steel Tubes also made headlines with its ₹540 crore IPO, which closed on Friday and was subscribed 28.46 times. The QIB category alone was subscribed 62.32 times, while the non-institutional and retail portions were subscribed 31.82 times and 7.99 times, respectively.
Kalpataru’s ₹1,590 crore IPO received bids for 2.26 times, Ellenbarrie Industrial Gases’ ₹852 crore issue was subscribed 22.19 times, and Globe Civil Projects’ ₹119 crore offering saw an astonishing 86 times subscription. Such figures reflect a vibrant market environment and a strong investor confidence.
The Driving Forces Behind the Surge
Investment bankers attribute this flurry of IPO activity to improved market sentiment. Institutional investors, particularly mutual funds and foreign investment vehicles, have been actively participating in these offerings. According to V Jaya Sankar, Managing Director of Kotak Investment Banking, domestic institutions are currently flush with liquidity and are increasingly viewing IPOs as an attractive investment avenue alongside the secondary market.
The current bullish environment in the stock market has encouraged more companies to consider launching IPOs. As noted by Pranav Haldea, Managing Director of Prime Database Group, the primary market is closely aligned with the secondary market, suggesting that continued positive sentiment could lead to more launches with favorable subscriptions and listing gains.
A Promising Future for IPOs
As of now, approximately two dozen companies have raised nearly ₹45,300 crore through IPOs in 2025 alone. The outlook remains optimistic, with estimates suggesting that IPOs worth ₹2.5-3.0 lakh crore are in the pipeline. This includes companies that have received regulatory approval, those awaiting the green light, and others set to file IPO documents in the coming weeks.
Data from Prime Database indicates that at least 73 companies have received approval from the Securities and Exchange Board of India (SEBI) to launch IPOs, with a total amount to be raised estimated at ₹1.2 lakh crore. Additionally, another 70 companies have filed draft red herring prospectuses with SEBI, potentially raising another ₹99,500 crore.
Conclusion
Mumbai continues to solidify its status as a bustling hub for IPO activity, driven by strong investor demand and favorable market conditions. The recent surge in IPOs not only reflects the growing confidence among investors but also signals a promising future for companies looking to tap into the capital markets. As the primary market evolves, it will be fascinating to observe how this trend unfolds and shapes the landscape of Indian finance in the coming months.