IPO market set for record-breaking FY25, says Prime Database MD

Haldea attributes the strong IPO pipeline to the buoyant secondary market, suggesting that both institutional and retail domestic investors will continue to inject significant capital.

The financial year 2024-25 will be stellar for the primary market, with initial public offerings (IPOs) expected to best the previous year’s fundraising of Rs 60,000 crore, Prime Database managing director Pranav Haldea has said.

"This is a stellar year for IPOs and we should safely surpass last year's figures," Haldea said. In the previous year, several offer sizes were relatively smaller. This year, they are averaging around Rs 800 crore an issue.

The 2024 election cycle has had a minimal impact on the primary market, contrasting sharply with previous years, he said.

The four previous election cycles saw a combined 28 IPOs raising about Rs 7,500 crore. This year, leading up to and following the elections, 52 IPOs are expected to raise Rs 50,000 crore.

Seven IPOs raised close to Rs 15,000 crore in April and May, typically slow months due to elections, making this poll cycle and an anomaly, he said.

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Haldea attributed the strong IPO pipeline to a buoyant secondary market, suggesting that both institutional and retail domestic investors would continue to inject significant capital.

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Despite the volatility, Haldea remains optimistic, saying the recent market uptrend bodes well for the primary market. "Primary markets generally do not favour volatility but the recent run-up in the market is a positive indicator for upcoming IPOs," he said.

Over the next two months, more than 24 companies are set to hit Dalal Street, looking to raise over Rs 30,000 crore. The line-up includes prominent names such as Afcons Infrastructure, Emcure Pharmaceuticals, Allied Blenders and Distillers, Asirvad Microfinance, Stanley Lifestyles, Waaree Energies, Premier Energies, Shiva Pharmachem, Bansal Wire Industries, One MobiKwik Systems, and CJ Darcl Logistics.

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The markets regulator the Securities and Exchange Board of India (Sebi) has already approved 18 IPOs, aiming to raise over Rs 20,000 crore.

Online travel agency Ixigo (Le Travenues) offer opened for subscription on June 10, the first company to launch an issue after the Lok Sabha election results. The IPO was fully subscribed on Day 1 itself.