IPO josh is back: Over 150 companies in ‘DRHP-ready’ status, filings could double in next 5-6 months, say merchant bankers

IPO josh is back: Over 150 companies in ‘DRHP-ready’ status, filings could double in next 5-6 months, say merchant bankers

Nearly 150 to 200 companies are gearing up to get into ‘DRHP-ready’ status in the coming months following the buoyancy in the secondary markets, say merchant bankers. They further add that if the markets continue to showcase optimism and a robust outlook, the number of filings could double in the next 5-6 months.

Data from the Securities and Exchange Board of India (SEBI) shows that the current calendar year has seen more than 75 IPO documents being filed in the first five months till date. Simply put, merchant bankers are expecting the number of filings to go up to anything between 150 and 200 in the second half of CY25.

“The IPO market is expected to open up soon, with momentum building steadily after a period of relative caution. We anticipate over 200 filings in the next five months, reflecting a strong pipeline of companies ready to tap public market,” said Mahavir Lunawat, Chairman, Association of Investment Bankers of India (AIBI), the industry body of merchant bankers.

“This surge points to growing promoter confidence, deepening domestic liquidity level, and a supportive economic environment. Key sectors such as tech, renewables, engineering, pharma, manufacturing, and consumer services are likely to be at the forefront, as businesses aim to leverage the liquidity and valuation advantages offered by the public markets. If this trend continues, it could mark one of the most active IPO phases in recent memory,” added Lunawat, Managing Director, Pantomath Capital Advisors.

Incidentally, January has been the best month of CY25 in terms of the number of filings as more than 25 companies filed their draft documents in the first month. Thereafter, February (13) and March (10) saw a slight dip as markets turned volatile with the Sensex shedding more than 5.5 percent in February before recovering in March. In April, when the index was up around 3.7 percent, nearly 20 companies filed their DRHPs.

In May, more than half a dozen companies have filed their IPO documents till date. The list includes big names like Canara HSBC Life Insurance Company and Canara Robeco Asset Management Company as well.

Further, data from Prime Database shows that already nearly 70 companies that got the SEBI approval for their respective IPOs could hit the markets anytime soon.

“I am very bullish. There are plenty of issues to be filed. All investment bankers have many issues in the pipeline to be filed and executed,” said Pratik Loonker, Managing Director and Head- Equity Capital Markets (ECM) and Co-Head – Financial Sponsors Group, Axis Capital.

“The market will be selective initially but at some time it will open up and accept a lot more companies as we have seen in the last couple of years. I expect the second half of this year to be exceptionally good if the markets remain stable. This is definitely a better period (for IPOs),” added Loonker.

The last calendar year (2024) was a record in terms of funds raised via IPOs as a total of 91 firms with a cumulative size of nearly Rs 1.60 lakh crore hit the market. This year till April, Rs 18,704 crore has been raised by 10 companies through main board public issues.