India’s IPO Market: A Resurgent Comeback in 2025
India’s primary market is experiencing a remarkable resurgence in 2025, shaking off a slow start to the year. With a wave of high-profile companies gearing up to enter the stock exchanges, the atmosphere is charged with optimism. This revival is buoyed by bullish equity markets, prompting companies to expedite their listing plans and capitalize on the favorable capital-raising environment.
As the Indian Premier League (IPL) wraps up, the focus shifts to a new season of Initial Public Offerings (IPOs). With a crowded IPO pipeline on the horizon, investors are being urged to reflect on the performance of past IPOs over the last four years, especially given the challenges many have faced.
A Thriving IPO Pipeline
The upcoming IPO pipeline is a testament to growing investor interest and improved market sentiment. Notable names from various sectors, including financial services, electronics, and market infrastructure, are preparing for significant public offerings. Companies such as NSDL, HDB Financial Services, Tata Capital, Hero Fincorp, and LG Electronics India are at the forefront, collectively showcasing the scale and depth of India’s revitalized IPO market.
Key IPOs to Watch in the Second Half of 2025
NSDL Eyes July Launch with ₹3,300 Crore OFS
One of the most anticipated IPOs is from the National Securities Depository Ltd (NSDL), which aims to raise approximately ₹3,300 crore (around USD 400 million) through a complete offer for sale. Approved by the Securities and Exchange Board of India (SEBI) in October 2024, this IPO is expected to hit the market in July. Key stakeholders, including IDBI Bank and the National Stock Exchange, will dilute their stakes in this offering. As India’s oldest depository, NSDL has demonstrated robust financial performance, reporting a 24.6% year-on-year increase in net profit to ₹3.4 billion in FY25.
HDB Financial Services Targets ₹12,500 Crore Listing
HDB Financial Services, the non-banking arm of HDFC Bank, is set to launch the largest IPO of 2025, targeting an issue size of ₹12,500 crore. Scheduled for mid-July, this IPO will help HDB comply with the Reserve Bank of India’s regulatory requirement for upper-layer non-banking financial companies (NBFCs) to list by September 2025. Founded in 2007, HDB provides retail loans across various sectors, maintaining a diversified loan book with minimal concentration risk.
Tata Capital Set to Raise ₹17,200 Crore
Tata Capital is another major player preparing for a public debut, aiming to raise approximately ₹17,200 crore (USD 2 billion) through its IPO. With the RBI deadline approaching, the company’s board has approved a mix of fresh issues and an offer for sale by Tata Sons, which holds a 93% stake. As a prominent NBFC under the Tata Group, Tata Capital offers a wide range of financial services, and this IPO will not only ensure regulatory compliance but also unlock long-term value for stakeholders.
LG Electronics India Plans ₹15,000 Crore Offering
Consumer electronics giant LG Electronics India is also eyeing the IPO route with a proposed issue of ₹15,000 crore, potentially ranking among India’s top five largest IPOs. The offering, filed via a Draft Red Herring Prospectus (DRHP) in December 2024, will involve the sale of a 15% stake held by its South Korean parent. With over 97% of its Indian product portfolio manufactured locally, LG India aligns closely with the ‘Make in India’ initiative, following Hyundai Motors India’s successful market debut last year.
Hero Fincorp Targets ₹3,670 Crore IPO
Hero Fincorp, backed by ChrysCapital and Hero MotoCorp, is looking to raise ₹3,670 crore, which includes a fresh issue of ₹2,110 crore and an offer for sale of ₹1,570 crore. Although the DRHP was filed in July 2024, regulatory delays related to unlisted compliance norms have postponed the process. Established in 1991, Hero Fincorp serves over 11.8 million customers and boasts ₹51,820 crore in assets under management, with a diversified loan book that includes two-wheeler loans, affordable housing, and MSME lending.
A Promising Future for IPOs
The resurgence of India’s IPO market in 2025 is characterized not only by an increase in volume but also by the quality of offerings. The upcoming pipeline features a diverse representation across sectors, including financial services, consumer goods, and capital market infrastructure.
With regulatory support and a positive shift in investor sentiment, upcoming IPOs like NSDL, Tata Capital, HDB Financial, Hero Fincorp, and LG Electronics India are poised to shape the next phase of capital market expansion. For investors, these listings present an opportunity to engage with companies that exhibit strong fundamentals, sectoral leadership, and promising long-term growth potential, making 2025 a pivotal year for IPO investing in India.
Conclusion
As the IPO landscape evolves, investors are encouraged to stay informed and consider the implications of these upcoming offerings. While the potential for growth is significant, it is essential to approach investments with caution and seek advice from certified experts before making any decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and do not reflect the opinions of Mint. Investors should consult certified experts before making any investment decisions.