'If not bullish, volatility should be minimal.'
July shaped up to be the busiest month for IPOs, with nearly a dozen companies raising over ₹10,000 crore.
The last time IPO activity was higher was in December 2024, when 15 firms raised a total of ₹25,439 crore.
The surge in activity was driven by favourable listing performances, consolidation in the secondary market, and a last-minute rush by companies looking to avoid updated financial disclosures.
The 10 companies that debuted in July witnessed an average gain of 22 per cent on listing day.
Investment bankers and analysts say the momentum could carry into the remainder of the year, with several marquee names, including Tata Capital, Groww, LG Electronics India, NSDL and JSW Cement in the queue to launch their offerings.
"The momentum started picking up in June. Once you see the window opening vis-a-vis demand for IPOs, then you start preparing for a launch," said Pranjal Srivastava, partner-investment banking at Centrum Capital.
The start of 2025 was sluggish for IPO activity. Just nine deals were launched in the January-March period, compared with 22 during the same period in the previous year.
Notably, March 2025 became the first month in nearly two years without a single IPO; the last time that happened was in May 2023.
"IPOs typically get launched when the market is bullish. If not bullish, at least volatility should be minimal," said Pranav Haldea, managing director, PRIME Database.
"The pipeline is so vast. There are companies which would be eager to launch their IPOs even if conditions may not be opportune. These are firms which either require capital immediately, need to provide an exit to shareholders, or are willing to lower valuation expectations rather than allow their approval to lapse after going through the 3-4 year IPO preparation process."
Companies with valid approvals from the Securities and Exchange Board of India are seeking to raise more than ₹1 trillion.
Another ₹1.4 trillion worth of IPOs are in the pipeline, awaiting regulatory clearance.
"As things stand right now," added Haldea, "there are no major red flags on the immediate horizon which shall impact the secondary market."
Feature Presentation: Rajesh Alva/Rediff
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