IPO euphoria returns! Companies line up offerings to capitalise on Indian stock market's rebound

India’s primary market has witnessed a flurry of activity, as several companies are lining up to list their shares on the exchanges in May. Improved sentiment in the Indian stock market has revived the IPO space, bringing back the buoyancy seen in the recent past.

While market activity has recently shown signs of a rebound, raising hopes that bidding for new issues will improve, nine companies have already listed their shares on Dalal Street after raising funds from investors, with eight being from the SME category.

Ather Energy is the only mainboard company to have debuted on the exchanges since February. In terms of subscription, two SME IPOs—Srigee DLM and Virtual Galaxy Infotech—were subscribed 456 times and 178 times, respectively, as retail participation resumed after a period of inactivity. Ather Energy also saw its retail portion subscribed 2 times.

In terms of current performance on the exchanges, most of these new listings have struggled, with six of them trading below their issue prices. Arunaya Organics has emerged as the biggest loser, trading 30% below its IPO price, followed by Kenrik Industries and Accretion Pharmaceuticals, both trading around 20% below their issue prices.

On the positive side, Srigee DLM is currently trading 125.3% above its IPO price, while Virtual Galaxy Infotech is also trading 23% higher than its IPO price.

In addition to the nine listings, another four companies are set to debut later this month. Among these, two belong to the mainboard category—Belrise Industries and Borana Weaves. The bidding for these has already begun, and they are likely to debut on Dalal Street on May 28 and May 27, respectively.

The remaining two belong to the SME segment. Bidding is already open for Unified Data Tech Solutions and Dar Credit Capital.

IPO activity for June also looks active, with the bidding for three mainboard issues—Prostarm Info Systems, Aegis Vopak Terminals, and Schloss Bangalore Limited—set to open at the end of this month. These companies are likely to debut on the exchanges during the first week of next month.

Over 75 companies have entered Dalal Street in 2025 so far

Overall, 79 companies have entered the exchanges in the current calendar year so far, which is lower compared to 131 listings during the same period last year. The year 2024 emerged as a record-breaking year for the Indian primary market, with a whopping 340 companies making their debuts on the exchanges, helping to increase the size of the Indian stock market.

Companies at the start of this year have held back their IPO plans, as weak market sentiment has made them wait for better market conditions to emerge. This has also led some of them to reduce their issue sizes.

Companies that did raise funds during this period witnessed lukewarm demand for their offerings. The SME segment—typically a favourite among retail investors—also saw subdued interest, with the retail portion rarely crossing the 100-times subscription mark. This contrasts with most SME IPOs in 2024, where the retail portion was often oversubscribed by more than 100 times.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.