India's IPO market set to raise $30B in 12 months
What's the story
India's initial public offering (IPO) boom is set to continue, with companies expected to raise over $30 billion in the next 12 months. This projection comes from Kotak Mahindra Capital Co., which is the country's leading arranger for equity deals this year. V Jayasankar, head of investment banking at Kotak, said around 150 firms are looking to tap into the equity market.
Market sentiment
Pace of IPO filings is robust
Jayasankar emphasized the strong pace of IPO filings, saying it shows the growing confidence of issuers in India's capital markets. He said, "The pace of IPO filings is robust, and it reflects the deepening confidence of issuers in India's capital markets." Despite a slow start in 2025 after a record $21 billion was raised in 2024, activity has picked up recently with several billion-dollar deals on their way.
Market performance
HDB Financial's strong debut boosts market sentiment
The recent strong debut of HDB Financial Services Ltd. has further boosted the market sentiment. The shadow lender's $1.5 billion IPO was India's largest in 2025 and is expected to contribute significantly to this year's overall IPO proceeds, which currently stand at $7 billion. Jefferies Financial Group predicts that as much as $18 billion could be raised in the second half of this year alone.
Economic outlook
Tata Capital, LG among firms looking to go public
Jayasankar attributed the strong IPO activity to India's large and fast-growing economy. He said, "Even if GDP isn't expanding at 8%, a 6%-plus growth rate still creates significant opportunities for businesses." Among those preparing to go public are Tata Capital Ltd., which plans to raise some $2 billion, and LG Electronics India Pvt. Ltd., which hopes to raise as much as $1.7 billion.
Market challenges
Jayasankar points out potential headwinds
Despite the bullish market sentiment backed by India's resilience to external geopolitical uncertainties and political stability, Jayasankar did point out some potential headwinds. He said a weak secondary market, declining domestic inflows or foreign investors shifting their focus toward more attractively valued markets such as China could challenge the IPO momentum.