Surge in IPO Activity: Eight Major Offerings Raise ₹19,000 Crore in June
| 2025-06-27
HDB Financial Services fixed the price band for the IPO in the range of ₹700 to ₹740 per share, with a lot size of 20 equity shares per lot
The Indian IPO market saw a resurgence in June with eight large public offerings raising ₹17,688 crore, alongside 30 SME IPOs generating ₹1,329 crore.
The month of June witnessed a sharp rebound in the Indian IPO market, driven by both large mainboard offerings and SME launches. The most prominent IPO of the month was by HDB Financial Services, which raised ₹12,500 crore. Other notable listings included Kalpataru Projects, which raised ₹1,590 crore, and Oswal Pumps, which garnered ₹1,387 crore. Other companies such as Ellenbarrie Industrial Gases, Sambhv Steel Tubes, and Arisinfra Solutions also contributed to the resurgence in activity.
Analysts noted that the surge in IPOs was partially driven by regulatory timelines set by the Securities and Exchange Board of India (Sebi), which encouraged companies to expedite their listings to avoid re-filing amid market uncertainties. While the broader market sentiment has been cautious due to concerns over overvaluation and muted earnings prospects, the rebound reflects an improving economic environment with easing inflation and renewed foreign institutional investor (FII) inflows.
Despite the strong fundraising numbers, there remains caution regarding potential underperformance in the secondary market. Analysts warn that any large IPO that lists below expectations could dampen investor sentiment and divert liquidity from the secondary market, which has shown signs of weakness in recent months.
SME IPOs Gain Momentum
While the larger offerings have garnered the most attention, the surge in IPOs from smaller businesses has also been noteworthy. In June, 30 companies from the SME segment raised a total of ₹1,329 crore, the highest in nine months. This marks a significant shift as smaller companies seem more confident in the market's growth, supported by a rising economic momentum.
Among the largest SME IPOs, Safe Enterprises Retail Fixtures raised ₹161 crore, followed by Pushpa Jewellers, which raised ₹94 crore. Other notable SME IPOs included Monolithisch India (₹82 crore), Neetu Yoshi (₹74 crore), and Patil Automation (₹66 crore). This growing activity indicates a positive outlook among smaller businesses, who are capitalising on the momentum in the equity markets.
Investor Interest: A Mixed Picture
While the overall fundraising figures are robust, investor response has been somewhat mixed. HDB Financial Services, for instance, saw its IPO subscribed 1.16 times by the second day of bidding. Among the three investor categories, Non-Institutional Investors (NIIs) led the charge, with subscriptions 2.29 times the available shares, indicating strong demand from individual investors.
Qualified Institutional Buyers (QIBs) subscribed to 90 per cent of their share allotment, while retail investors remained cautious, subscribing to 64 per cent of their portion. This indicates that while there is investor interest, concerns over valuations may be keeping a significant number of potential buyers on the sidelines.
The Grey Market Premium (GMP) Trend
HDB Financial Services' IPO also saw its grey market premium (GMP) rise sharply to ₹60 per share as of Thursday, 26 June. The grey market premium is a key indicator of investor sentiment before the shares are officially listed. The IPO's price band is set between ₹700 and ₹740 per share, and the GMP suggests that shares may list at ₹800, reflecting a potential listing premium of around 8.11 per cent.
The rise in GMP follows an increase in subscriptions, particularly among the non-institutional investors, who seem to be driving interest in the offering.
Market Outlook: Caution and Geopolitical Risks
Looking ahead, experts caution that geopolitical risks, coupled with potentially lukewarm IPO listings, could dampen the market’s momentum. Analysts are particularly concerned about the impact of any large IPOs underperforming at the time of listing, which could sour sentiment across the market. The recent months of market volatility, triggered by geopolitical tensions between India and Pakistan, as well as the Israel-Iran conflict, have only added to the uncertainty.
Despite these concerns, domestic institutional investors (DIIs) have continued to support both the primary and secondary markets, even as foreign institutional investors (FIIs) have shown a more cautious approach. The future of the IPO market, particularly in the second half of the year, will depend largely on domestic and international economic developments and investor sentiment.
Context:
The current IPO surge represents a sharp contrast to the subdued activity seen earlier in the year. Due to a combination of weak market sentiment and geopolitical risks, many companies had delayed their IPOs, opting to wait for more favourable conditions. However, the improving macroeconomic outlook, with inflation easing and FII inflows returning, has provided a boost to investor confidence.
Despite this resurgence, market analysts remain cautious, particularly regarding valuations. Many sectors, such as technology and real estate, are seen as overvalued given the limited visibility on future earnings growth. The coming months will likely be crucial in determining whether the market can maintain its momentum or if broader economic factors will once again take centre stage.
The performance of the recent IPOs, including that of HDB Financial Services, will be closely watched for any signs of broader market sentiment shifts.
India Astronaut Shukla Aboard ISS as Axiom Space Mission Makes History
Group Captain Shubhanshu Shukla becomes the first Indian on the ISS during Axiom Space’s historic mission with SpaceX and NASA, highlighting India’s expanding role in human spaceflight.
|2025-06-27
Indian Astronaut Shubhanshu Shukla Reaches ISS in Historic Private Spaceflight
Shubhanshu Shukla becomes the first Indian in 41 years to reach the International Space Station, joining SpaceX's Axiom-4 mission launched from Florida.
|2025-06-26
India Economy Shows Resilience Amid Global Uncertainty, Says RBI
India’s economy remains resilient despite global trade and geopolitical tensions, with strong growth, stable inflation, and rising investment, says RBI report.
|2025-06-26
US Airstrikes on Iranian Nuclear Sites Caused Limited Setback, Says Intel Report
A US intelligence assessment suggests recent strikes on Iran's nuclear facilities caused limited damage, contradicting claims of full destruction.
|2025-06-25
Israel–Iran Ceasefire Announced by Trump After 12 Days of Escalation
US President Donald Trump claims Israel and Iran have agreed to a ceasefire after a 12-day conflict, though no official confirmation has yet been issued.
|2025-06-24