The Indian IPO Market: A Tale of Two Years

The year 2024 was a blockbuster for Initial Public Offerings (IPOs) in India, characterized by a flurry of new public issues that captivated investors and market watchers alike. However, as we step into 2025, the Indian IPO market has started off on a much lackluster note. The vibrant atmosphere of the previous year has given way to a notable silence, with the IPO calendar largely blank, save for a few small issues. As the earnings season kicks off, anticipation builds around major players like PhonePe, Tata Capital, Zepto, and Ather Energy, who are waiting in the wings for their chance to make a splash.

This Week’s IPO: Tankup Engineers Breaks the Silence

While the mainboard IPOs remain dormant, the SME segment offers a glimmer of activity. Tankup Engineers is set to launch its IPO between April 23 and April 25, with an issue size of Rs 19.53 crore. This SME issue consists of a fresh issue of 13.95 lakh shares, with a price band set between Rs 133 to Rs 140 per share. The allotment of shares is expected to be finalized by April 28, with shares anticipated to list on the NSE SME platform on April 30. Hem Securities serves as the lead manager for this public issue, while Bigshare Services acts as the registrar.

Why is the IPO Market So Quiet?

The dramatic slowdown in the Indian IPO market in 2025 is evident, with very few mainboard listings so far. Reports indicate that around 144 companies, with proposed IPOs worth Rs 1.47 lakh crore, have put their listings on hold. Of these, 67 companies are still awaiting approval from the Securities and Exchange Board of India (SEBI). The numbers are telling: between January and February 2025, only Rs 16,000 crore was raised through 10 mainboard IPOs, marking a steep 37% drop compared to December 2024. March saw a complete freeze, with no mainboard IPOs hitting the market. In April, only seven companies have listed, a stark contrast to the 25 during the same period last year.

Upcoming IPOs to Watch

Despite the current lull, several high-profile companies are gearing up to launch their IPOs this year, each with its unique story and potential impact on the market.

PhonePe

One of the most anticipated IPOs is that of PhonePe, the Walmart-backed digital payments giant. Recently, the company transitioned from a private to a public limited entity in preparation for its IPO. Notably, in 2022, PhonePe moved its headquarters from Singapore to India, reportedly paying Rs 8,000 crore in taxes during the transition. While the exact timeline for its listing remains under wraps, PhonePe is expected to debut on the NSE and BSE this year.

LG Electronics India

Another significant player, LG Electronics India, had planned a substantial Rs 15,000 crore offer-for-sale, marking a 15% stake dilution by its South Korean parent. With over 98% of its products manufactured in India and FY24 revenue of Rs 21,352 crore, the company’s IPO was anticipated to be a major event. However, global economic uncertainty and shifting investor sentiment have led to a delay in its listing.

Tata Capital

Tata Capital, the financial services arm of the Tata Group, is also preparing to enter the IPO arena. The company has filed a draft red herring prospectus (DRHP) with SEBI for a Rs 16,000 crore IPO, which will include a fresh issue of 2.3 crore equity shares alongside an offer for sale. This listing could mark one of the largest in the financial services sector in recent times.

Reliance Jio Infocomm

Reliance Jio Infocomm is expected to lead the IPO charge with a massive Rs 40,000 crore issue, potentially becoming India’s largest IPO to date. The company is targeting a valuation of Rs 10 lakh crore (approximately $120 billion). Although the timeline for this listing has not been announced, market watchers anticipate it could take place in Q2 or Q3 of 2025.

Zepto, Ather Energy, and Urban Company

In addition to these giants, Zepto, the 10-minute delivery startup, is preparing to file its DRHP soon, aiming to raise between Rs 6,400 crore to Rs 8,000 crore. Ather Energy has revised its IPO size to Rs 3,000 crore from an earlier plan of Rs 4,000 crore, following a drop in valuation. Urban Company, a tech-enabled home services provider, is also in line but has reduced its fundraising target to Rs 500 crore from the earlier Rs 3,000 crore.

Fintech and Cement Giants Awaiting Their Turn

The IPO pipeline for this year also includes HDB Financial Services and Hero FinCorp, which are gearing up to raise Rs 12,500 crore and Rs 3,668 crore, respectively. Additionally, JSW Cement is expected to launch its Rs 4,000 crore IPO this year. If these listings materialize in the coming months, they could add significant depth to India’s primary market.

Conclusion

As we navigate through 2025, the Indian IPO market presents a mixed bag of opportunities and challenges. While the current landscape may appear quiet, the anticipation surrounding upcoming IPOs from major players suggests that the market could soon regain its vibrancy. Investors and market participants will be keenly watching how these developments unfold in the coming months, hoping for a resurgence that mirrors the excitement of 2024.