India's IPO market eyes $2.4 billion in offerings in July as confidence rebounds

Indian firms could raise some $2.4 billion through IPOs in July, investment bankers said, raising hopes of a sustained revival in primary offerings after demand was dented by the US trade war and global geopolitical tensions earlier this year.

That amount would mark the strongest month since December and would follow a robust $2 billion raised in June, though most of that was raised by one company, HDB Financial Services.

Education loan provider Credila Financial Services, National Securities Depository Ltd (NSDL), surveillance firm Aditya Infotech and power-transmission-goods maker MB Engineering are conducting roadshows and are expected to go public this month, bankers said.

They spoke on condition of anonymity as the companies have yet to make the timing of their IPOs and other details public. The companies did not respond to Reuters requests for comment.

India's IPO market had its best-ever year in 2024, with $20.5 billion raised, second only to the US, riding high on money inflows from domestic investors who have become wealthier on growth in the world's fifth-largest economy and were optimistic about more economic growth.

This year was widely expected to be another record year but US President Donald Trump's trade war, tensions with Pakistan and in the Middle East took much wind out of those IPO sails. South Korean conglomerate LG Electronics' India unit and other companies ended up delaying their capital raising plans.

Things now look to be getting back on track, particularly with the Nifty 50 and Sensex having regained lost ground to trade about 3 per cent off from their peaks.

"The IPO market has come back.... The absence of most of the negatives is driving the market more than anything else," said Suraj Krishnaswamy, the managing director of investment banking at Axis Capital.

So far this year, India continues to the world's No. 2 IPO market with $5.86 billion raised, accounting for the 12 per cent of total proceeds globally, LSEG data shows.

A thick pipeline

The largest offering this month is likely to be Credila, which has said it is seeking $584 million.

NSDL, India's largest stock depository, is looking to raise $400 million, according to a banker.

NSDL received its regulatory nod for a listing as far back as September but market sentiment trended lower not long after on concerns about slower growth for the economy and corporate profits.

Details about the two firms' valuations and IPO dates could be announced soon, bankers said.

Other major offerings in the pipeline are LG Electronics India's $1.8 billion IPO, and issues from JSW Cement and defence equipment maker SMPP worth around $470 million each, they added.

JSW's offering could come in late July or early August, according to one banker. The timing of the other two was less clear.

According to PRIME Database, there are 143 Indian IPOs being planned worth a potential $26 billion. Of those, 73 have been approved by regulators.

"We expect the upcoming months to be the best for Indian IPO market as compared to what we have seen so far this year," Bhavesh Shah, the managing director and head of investment banking at Equirus.

Others, however, were more cautious in their optimism, saying that participation from high net worth individuals and ordinary retail investors is unlikely to be as strong as it was last year.

"Investors have become far more selective and are now much more mindful about where they see higher potential for returns," said Umesh Agrawal, fund manager at 360 ONE Asset.