The Slump and Revival of India’s IPO Market in 2025
The initial public offering (IPO) market in India has experienced a significant downturn in the calendar year 2025, reflecting the broader volatility in Indian equities. As of March 24, 2025, only nine mainboard IPOs have been launched, a stark contrast to the 92 IPOs that graced the primary markets throughout 2024. This decline has raised concerns among investors and market analysts, especially considering that September 2024 was hailed by the Reserve Bank of India as the busiest month for IPOs in the last 14 years.
Factors Behind the IPO Slump
The reluctance of companies to launch public issues in 2025 can be attributed to several factors. The Indian stock market has faced considerable corrections, driven by global economic uncertainties, particularly following the tariff policies introduced by US President Donald Trump. Additionally, foreign institutional investors (FIIs) have been consistently selling off Indian stocks, further exacerbating the market’s instability. Weak earnings reports from Indian corporates have also contributed to a cautious sentiment among potential IPO issuers.
Signs of Recovery
Despite the challenging environment, recent developments indicate a potential turnaround for the IPO market. Between March 17 and March 24, 2025, benchmark equity indices NIFTY and SENSEX rebounded by approximately 5.6%, recovering from a more than 6.5% decline in the first two months of the year. This resurgence has reignited the IPO plans of several major corporations that had previously adopted a wait-and-watch approach to avoid losses in a volatile market.
Major Players Leading the IPO Revival
LG Electronics India
One of the most significant developments in the Indian IPO landscape is the anticipated launch of LG Electronics India’s IPO. The company recently received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its public offering. This IPO, which is entirely an offer-for-sale (OFS) of up to 10.18 crore equity shares by LG Electronics Inc., is expected to open by mid-April 2025, following an investor roadshow.
National Securities Depository Ltd (NSDL)
Another positive sign for the IPO market is the expedited ₹3,000-crore IPO of National Securities Depository Ltd (NSDL). The largest securities depository in India is pushing to launch its IPO in April 2025 to comply with SEBI’s ownership norms. This offering will also be an OFS, featuring stake sales by prominent entities such as the National Stock Exchange of India (NSE), IDBI Bank, and HDFC Bank.
E-commerce and Fintech Giants
The e-commerce sector is also poised for significant IPO activity. Meesho, a leading player in the space, has engaged Morgan Stanley, Kotak Mahindra Capital, and Citi Bank as bankers for its upcoming IPO, aiming for a valuation of $10 billion and a target of raising $1 billion.
In the fintech arena, Pine Labs Ltd is planning a $1 billion IPO, which, if successful, would mark the second-largest fintech IPO in India after Paytm’s $2.5 billion listing in 2021. Additionally, the consumer electronics company boAt has submitted a confidential draft red herring prospectus (DRHP) for its IPO, targeting a raise of ₹2,000 crore.
Tata Capital and PhysicsWallah
Tata Group’s financial services arm, Tata Capital Ltd, is also moving forward with its IPO plans, reportedly finalizing ten investment bankers for a ₹15,000 crore public offering, with draft papers expected to be filed with SEBI as early as April 2025. Meanwhile, edtech firm PhysicsWallah has filed its DRHP with SEBI, aiming to raise around ₹4,600 crore through a combination of fresh shares and an OFS component.
Looking Ahead
These developments have sparked optimism that India’s IPO market may regain momentum in the remaining months of 2025. However, investors remain cautious, closely monitoring pricing and valuations amid ongoing global concerns regarding inflation, geopolitical stability, and macroeconomic conditions.
As the IPO landscape evolves, stakeholders will be keenly observing how these upcoming offerings perform and whether they can restore confidence in the Indian equity markets. For those interested in tracking IPO listings, schedules, and upcoming offerings, further information can be found here.
In conclusion, while the IPO market in India has faced significant challenges in 2025, the recent signs of recovery and the upcoming launches from major corporations suggest that a revival may be on the horizon. The coming months will be crucial in determining the trajectory of the IPO market and its ability to attract investor interest once again.