Banking & finance lead Rs 1.6 lakh crore-plus India Inc IPO pipeline; engineering has max issuers: Uniqus Consultech

Banking & finance lead Rs 1.6 lakh crore-plus India Inc's IPO pipeline; engineering has max issuers: Uniqus Consulting

With an estimated issue size of Rs 50,394 crore across 14 issuers, banking & finance has emerged as the top segment in combined expected capital raise in India Inc's IPO pipeline, contributing 25% to 30% of the pool, according to the latest quarterly India IPO insights report by Uniqus Consultech.

"This significant lead underscores the sector’s robust financial appetite and investor interest, particularly in the NBFC and lending sub-segments. Prominent names such as Tata Capital, HDB Financial, and Credila Finance spearhead this trend, marking some of the largest anticipated offerings in this category," the report said.

Market regulator SEBI has received approximately 160 draft offer documents over the last 18 months, pending launch or listing, which collectively represent a proposed issue size of over Rs 1.61 lakh crores ($19 billion)

Second on the list behind banking and finance is the solar sector, with a projected issue size of Rs 11,871 crore across 9 issuers, a trend which underscores the heightened investor focus on clean and renewable energy. The sector's position signals government policy support and ESG-driven capital flows.

The highest number of issuers, 16, are expected from the engineering segment with a total issue size of Rs 10,645 crore.

"Engineering highlights a broad base of industrial and manufacturing players tapping into capital markets to fund expansion and modernization," Uniqus Consultech said.

IT (8 issuers, Rs 6,534 crore), pharma (8 issuers, Rs 5,775 crore), real estate (6 issuers, Rs 4,890 crore), chemicals (6 issuers, Rs 6,187 crore), education/edtech (2 issuers, Rs 4,850 crore) and electrical equipment (7 issuers, Rs 4,493 crore) rounded up the top 10 sectoral activity list.

Key trends in Q2 2025 IPO activity

The second quarter of 2025 recorded 9 mainboard IPOs raising Rs 13,851 crore (versus Rs 15,984 crore in Q1’25).

The average issue size and the number of IPOs remained largely the same over both quarters. Interestingly, the second quarter saw a clear shift towards primary issuances, which accounted for 87% of total IPO proceeds. This was in contrast to the first quarter of 2025, when Offer for Sale (OFS) dominated, contributing 89% of the proceeds.

Of the nine IPOs launched in Q2 2025, nearly 80% closed their debut trading day with positive listing gains, delivering an average premium of 3.1%. While this marks a moderation from the surge seen in early 2025, it signals a constructive and stabilised market environment—favourable for both issuers and long-term investors.

The Uniqus Consultech report added that when it came to utilisation of issue proceeds between April to June 2025, issuers focused on strengthening their balance sheets, directing 57% of IPO proceeds to debt repayment. Schloss Bangalore, Belrise, Aegis Vopak Terminals, Oswal Pumps, and Scoda Tubes are examples. This marks a significant increase compared to the 27% share seen in Q1 2025.

Capital expenditure and general corporate purposes accounted for 18% and 11% of proceeds respectively.