May 23, 2024
New Delhi, India
IPO
India’s IPO market is witnessing a fresh wave of momentum in May, with companies rushing to capitalize on improving investor sentiment and a recovering stock market. After a subdued start to the year, the primary market has seen nine new listings this month alone—eight from the SME segment and one mainboard entry by Ather Energy.
The broader resurgence in market activity is driving optimism, especially among retail investors who had pulled back in previous months. Two SME IPOs—Srigee DLM and Virtual Galaxy Infotech—saw robust demand, with subscription levels touching 456 times and 178 times respectively. Ather Energy’s retail portion was subscribed twice, underlining renewed confidence in quality offerings.
Mixed Performance Post-Listing
Despite the flurry of IPOs, performance on the exchanges has been mixed. Six out of the nine recently listed stocks are trading below their issue price. Arunaya Organics has seen the steepest decline, falling 30%, followed by Kenrik Industries and Accretion Pharmaceuticals, which are both down around 20%.
However, some bright spots remain. Srigee DLM is currently trading 125.3% above its IPO price, while Virtual Galaxy Infotech is up by 23%.
More Listings Ahead in May and June
Investor enthusiasm is expected to stay upbeat, with four more companies set to debut before the end of May. Among them, mainboard players Belrise Industries and Borana Weaves are already in the bidding phase, with their listings scheduled for May 28 and May 27, respectively. Two SME IPOs—Unified Data Tech Solutions and Dar Credit Capital—are also in the pipeline.
Looking ahead to June, three more mainboard IPOs—Prostarm Info Systems, Aegis Vopak Terminals, and Schloss Bangalore Limited—are expected to open for bidding in the final days of this month and make their market debuts in early June.
2025 Off to a Steady Start Despite a Slow January-March Phase
So far in 2025, 79 companies have listed on Indian exchanges. Though lower than the 131 listings recorded during the same period last year, the current pace indicates a healthy revival. In contrast, 2024 had been a record year, with 340 companies going public, marking a historic surge in IPO activity.
The cautious start to 2025 was largely driven by weak market sentiment earlier in the year, which forced many companies to delay or downsize their IPO plans. During this period, investor demand remained tepid, particularly in the SME segment where the retail subscription rarely crossed 100 times—a sharp contrast to 2024’s frenzy, where oversubscription was often the norm.
As market conditions improve and investor appetite rebounds, the stage appears set for a more dynamic IPO landscape through the rest of the year.
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