IPO Party To Be Alive And Kicking In 2025

India’s IPO market has been on an exceptional rise in 2024, with companies raising over Rs 3 lakh crore through initial public offerings (IPOs), surpassing all previous records. The trend shows no signs of slowing down, with major players like Flipkart, LG India, and Reliance Jio preparing for their own listings in 2025. The year is shaping up to be a potential game-changer, with these IPOs having the potential to break records and reshape India’s corporate landscape.

2024: A Landmark Year for IPOs in India

The year 2024 marked a monumental surge in IPO activity in India. Major companies such as Hyundai Motors India, Bajaj Housing Finance, Swiggy, NTPC Green Energy, and OLA Electric raised significant funds, contributing to a total of over Rs 3 lakh crore in equity fundraising. This represents a 64% increase from the previous record set in 2021.

Pinak Bhattacharya, Head of Corporate Finance at IIFL Capital, attributes this surge to favorable macroeconomic conditions, a stable equity market, and increased investor confidence driven by stable policies and growth prospects. He adds that the funds raised are crucial for capital expansion, deleveraging balance sheets, and exploring growth opportunities.

The IPO Frenzy Extends into 2025: Key Players to Watch

Looking ahead to 2025, India’s IPO market is poised for even greater action. Industry giants such as Flipkart and LG India are already preparing for their IPOs, expected to set new records.

• Flipkart, India’s largest e-commerce company valued at $36 billion, is gearing up for what could be the largest share issue by a new-economy company in India. The company, owned by Walmart, has received internal approvals to shift its domicile from Singapore to India—believed to be a first step toward its IPO.
• LG India, with a potential valuation of $15 billion, is considering a listing in 2025, based on positive feedback from analysts and investors. This would further add to the momentum in India’s IPO market.

In addition to these major IPOs, several listed companies are planning to take their subsidiaries public in 2025, including Reliance Industries, HDFC Bank, Hero MotoCorp, Manappuram Finance, and Greaves Cotton, among others. These subsidiary IPOs will allow companies to raise independent capital and create opportunities for investors to gain exposure to focused, growth-driven businesses.

Subsidiary IPOs: A New Trend in India’s IPO Market

Many large companies are now looking to raise funds for their subsidiaries. This trend is expected to gain momentum in 2025, with more than a dozen subsidiaries planning IPOs, such as:

• Greaves Electric Mobility (Greaves Cotton)
• HDB Financial Services (HDFC Bank’s NBFC arm)
• Hero FinCorp (Hero MotoCorp’s financial services arm)
• Canara Robeco (Canara Bank’s mutual fund arm)

For example, HDB Financial Services recently filed its draft prospectus for a Rs 12,500 crore IPO, which would be India’s largest-ever offering by a non-banking financial company (NBFC). These moves demonstrate that India’s IPO market is diversifying, with an increasing number of companies raising capital through subsidiary listings.

Could 2025 See the “Mother of All IPOs”?

The IPO market in India has witnessed several record-breaking listings in recent years. For instance, Hyundai Motor India’s Rs 27,870 crore IPO in 2024 became the largest in the country’s history, surpassing LIC’s Rs 20,557 crore IPO in 2022. However, 2025 might see an even larger listing, especially with Reliance Jio preparing for a public offering.

• Reliance Jio, Mukesh Ambani’s telecom business, is expected to launch an IPO in 2025. Valued at over $100 billion, the offering is anticipated to be the largest-ever in India, surpassing Hyundai’s record. Although the IPO was initially slated for earlier, sources indicate that Jio has now achieved a stable business and revenue stream, making 2025 the ideal time for its market debut.

With Reliance Industries also planning an IPO for Reliance Retail down the line, 2025 could be a groundbreaking year for India’s stock market. These listings will undoubtedly shape the future of India’s IPO landscape, making it a pivotal year for investors and companies alike.

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