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CNA
a day ago
- Business
- CNA
India set for IPO surge as more companies plan to tap equity markets
MUMBAI: India is set for a surge in initial public offerings (IPOs) before the end of 2025, with listings expected to raise billions of United States dollars. Companies are projected to raise US$18 billion through IPOs in the second half of this year, according to Jefferies Financial Group. Indian firms appear to be moving past earlier concerns over trade and geopolitical uncertainty, increasingly turning to IPOs as a preferred means of raising capital. REVERSAL FROM LUKEWARM ACTIVITY The IPO surge marks a sharp turnaround from the subdued activity seen earlier this year. Yatin Singh, CEO of investment banking at Emkay Global Financial Services, said it is partly from easing concerns over US tariffs. 'Once markets sensed that the perceived threat of tariffs to the Indian economy in particular is not as extreme as it was originally feared, there was a revival in confidence and that immediately opened up the floodgates for IPOs,' he added. The revival is being driven by strong investment flows into mutual funds, which finds its way to IPOs and institutional investors. According to research firm Prime Database, IPOs worth US$30 billion from 161 companies have either been approved or are currently under review by India's market regulator. The companies span a wide range of sectors, including finance, clean technology, construction, and retail. The IPO list includes the Indian unit of LG Electronics, which is targeting US$1.7 billion. Meanwhile, lender Tata Capital is aiming for a US$2 billion listing. CONFIDENCE IN ECONOMIC OUTLOOK Public listings are often aimed at raising funds for expansion, and analysts say a robust IPO pipeline signals growing confidence in India's economic outlook. The World Bank projects India's gross domestic product (GDP) will grow by 6.3 per cent in the current financial year. Observers said this suggests India could maintain its position as the world's fastest-growing major economy. But not all market analysts share the same optimism, especially retail investors. In recent years, many middle-class Indians have flocked to equities in search of high returns as markets rallied. However, that enthusiasm has waned. Ajay Tyagi, head of equities at UTI Asset Management, noted that valuations and investor demand for public listings have yet to return to their previous highs. 'For IPOs to go back to where they were in 2023 and 2024, you have to see the excitement in the equity markets go back once again,' he said. 'I think we are some time away from that. There has been a let off in this excitement from the retail investors and that's why you're seeing the retail participation, while still strong, in terms of magnitude it is coming down.' There is also a lot of uncertainty still on the horizon, said experts. Such risks could swiftly stall the IPO market's revival, as investors closely watch whether a potential US-India trade deal can avert crippling US tariffs. Emkay Global Financial Services' Singh said: 'The tariff situation, the belief is India has got it under control and that's why markets are stable and doing okay, but it can go the other way around as well.'
Economic Times
23-07-2025
- Business
- Economic Times
Tata Capital seeks up to $20 billion valuation in upcoming IPO
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Tata Capital Ltd. is seeking a valuation of $18 billion to $20 billion in its planned initial public offering and could file an updated draft red herring prospectus as soon as this week, people familiar with the matter valuation is much higher than an earlier target of about $11 billion, with the Tata Group unit buoyed by a recent rights issue and the success of other IPOs in India, including by fellow shadow lender, HDB Financial Services Ltd., the people said. HDB attracted strong demand and raised about $1.5 Capital aims to raise about $2.2 billion in its IPO, which is expected to launch in the first half of September, the people said, asking not to be identified discussing confidential for Tata Capital and parent Tata Sons Pvt. didn't respond to requests for that valuation, Tata Capital would rank as India's fourth-biggest shadow bank Bajaj Finance Ltd. has a market value of about $69 billion, followed by Bajaj Finserv Ltd. and Jio Financial Services Ltd. at $38 billion and $23 billion, is valued at about $7.7 billion following its debut earlier this month, having rallied almost 14% on its first day of around India's equity markets is picking up again, with other big listings in the pipeline, including the local unit of LG Electronics Inc., which is looking to raise as much as $1.7 billion. Kotak Mahindra Capital Co. expects more than $30 billion to be raised in Indian IPOs over the next 12 months, an executive from the bank said in an interview with Bloomberg News this Capital initially filed confidential IPO papers in April and received approval from India's market regulator last month to proceed. Companies are then required to submit an updated draft red herring prospectus and allow time for public feedback before filing a final Reserve Bank of India has issued guidelines requiring larger shadow banks including Tata Capital to list by the end of September.
Bloomberg
23-07-2025
- Business
- Bloomberg
Tata Capital Is Said to Seek Much Higher IPO Valuation Target
Tata Capital Ltd. is seeking a valuation of $18 billion to $20 billion in its planned initial public offering and could file an updated draft red herring prospectus as soon as this week, people familiar with the matter said. The valuation is much higher than an earlier target of about $11 billion, with the Tata Group unit buoyed by a recent rights issue and the success of other IPOs in India, including by fellow shadow lender, HDB Financial Services Ltd., the people said. HDB attracted strong demand and raised about $1.5 billion.
Time of India
23-07-2025
- Business
- Time of India
Tata Capital seeks up to $20 billion valuation in upcoming IPO
Tata Capital Ltd. is seeking a valuation of $18 billion to $20 billion in its planned initial public offering and could file an updated draft red herring prospectus as soon as this week, people familiar with the matter said. The valuation is much higher than an earlier target of about $11 billion, with the Tata Group unit buoyed by a recent rights issue and the success of other IPOs in India, including by fellow shadow lender, HDB Financial Services Ltd., the people said. HDB attracted strong demand and raised about $1.5 billion. Explore courses from Top Institutes in Please select course: Select a Course Category Others Degree Technology healthcare Artificial Intelligence Design Thinking Project Management Management Digital Marketing Leadership MBA Data Science Healthcare Finance PGDM Operations Management Data Analytics Data Science others MCA Product Management Cybersecurity Public Policy CXO Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Tata Capital aims to raise about $2.2 billion in its IPO, which is expected to launch in the first half of September, the people said, asking not to be identified discussing confidential information. Representatives for Tata Capital and parent Tata Sons Pvt. didn't respond to requests for comment. At that valuation, Tata Capital would rank as India's fourth-biggest shadow bank . Bajaj Finance Ltd. has a market value of about $69 billion, followed by Bajaj Finserv Ltd. and Jio Financial Services Ltd. at $38 billion and $23 billion, respectively. Live Events HDB is valued at about $7.7 billion following its debut earlier this month, having rallied almost 14% on its first day of trading. Enthusiasm around India's equity markets is picking up again, with other big listings in the pipeline, including the local unit of LG Electronics Inc., which is looking to raise as much as $1.7 billion. Kotak Mahindra Capital Co. expects more than $30 billion to be raised in Indian IPOs over the next 12 months, an executive from the bank said in an interview with Bloomberg News this week. Tata Capital initially filed confidential IPO papers in April and received approval from India's market regulator last month to proceed. Companies are then required to submit an updated draft red herring prospectus and allow time for public feedback before filing a final version. The Reserve Bank of India has issued guidelines requiring larger shadow banks including Tata Capital to list by the end of September.
News18
23-07-2025
- Business
- News18
IPO Wave Incoming: Tata, LG Among Big Names In India's Rs 2.58 Lakh Crore Pipeline
Last Updated: India's primary market is set for a blockbuster second half of 2025, with IPOs worth over Rs 2.58 lakh crore in the pipeline Upcoming IPOs: India's primary market is set for a blockbuster second half of 2025, with initial public offerings (IPOs) worth over Rs 2.58 lakh crore in the pipeline. From Tata Capital's Rs 17,200 crore offer and LG Electronics India's Rs 15,000 crore issue to Groww's Rs 5,950 crore share sale, a wave of large-scale listings is expected to hit Dalal Street. According to Prime Database, IPOs worth Rs 1.15 lakh crore have already secured approval from the Securities and Exchange Board of India (SEBI), while another Rs 1.43 lakh crore in share sale proposals await regulatory clearance. Among the most anticipated listings is LG Electronics India, a wholly owned arm of South Korea's LG Electronics, which plans to raise Rs 15,000 crore. Financial services companies, new-age startups, and unicorns are also lining up to tap public markets. Several firms are preparing their listings, including Dorf Ketal Chemicals and Credila Financial Services, each planning to raise Rs 5,000 crore. Others in the queue include JSW Cement and SMPP Ltd (Rs 4,000 crore each), Hero Fincorp (Rs 3,668 crore), NSDL (Rs 3,400 crore), and Continuum Green Energy (Rs 3,650 crore). So far in 2025, up to July 2, 90 companies have filed their Draft Red Herring Prospectus (DRHP) with SEBI. These firms collectively aim to raise around Rs 1.17 lakh crore, signaling strong IPO momentum. Tata Capital Ltd leads with the largest proposed IPO at Rs 17,200 crore. Other major names in the IPO pipeline include Meesho Ltd (Rs 4,250 crore), PhysicsWallah Ltd (Rs 4,000 crore), Orkla India Pvt Ltd (Rs 3,200 crore), Juniper Green Energy, and Tenneco Clean Air India Ltd (Rs 3,000 crore each). Last week, ICICI Prudential Asset Management Company filed draft papers with SEBI for a Rs 10,000 crore IPO, potentially making it one of the largest asset management listings in India. 'The IPO pipeline is the largest it has ever been in the Indian market. Unless there is major negative news flow, I expect a very strong second half of the year," said Pranav Haldea, Managing Director at Prime Database Group. 18 Approved Companies Yet to Launch IPOs Out of the 71 companies that have already received SEBI approval in 2024, 18 are yet to proceed with their IPOs. Analysts say lukewarm feedback from the grey market or investor caution may be reasons for the delay. Haldea noted potential valuation mismatches, market feedback, or internal strategy changes as possible causes for the hesitation. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, added that many firms became cautious after the market correction of nearly 20% following the September 2024 peak.'When markets correct from their highs, companies tend to wait for better conditions despite already having SEBI approvals," he said. Rs 46,000 Crore Raised in H1 2025 Despite global headwinds and geopolitical uncertainty, India's IPO market remained resilient in the first half of 2025. As of July 2, 25 companies had raised more than Rs 46,000 crore. Among the standout listings was HDB Financial Services, which raised Rs 12,500 crore in June—marking the largest IPO by a non-banking finance company and the biggest since Hyundai Motor India's Rs 27,870 crore offering in 2024. Buoyant Sentiment Drives IPO Rush The surge in IPOs is supported by strong macroeconomic fundamentals, low inflation, stable policy environment, and robust retail participation.'Primary markets tend to mirror the sentiment of the secondary markets. Since April, we've seen rising optimism, which is clearly reflected in IPO activity," Haldea said. Looking ahead, experts believe India's IPO market is well-positioned to set new records in 2025, driven by renewed investor confidence and the planned listing of several high-quality companies. tags : IPO view comments Location : New Delhi, India, India First Published: July 23, 2025, 07:39 IST News business » ipo IPO Wave Incoming: Tata, LG Among Big Names In India's Rs 2.58 Lakh Crore Pipeline Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
