NSE, Jio Platforms IPOs set to revive India's public markets
What's the story
The upcoming initial public offerings (IPOs) of the National Stock Exchange (NSE) and Jio Platforms in September are likely to revive India's public markets. The two companies had filed their draft papers in June, seeking to raise around ₹30,000-31,500 crore and ₹37,000-37,700 crore, respectively. These would be the largest IPOs in India so far. Hyundai India raised around ₹27,870 crore with its IPO in October 2024, while LIC's issue was worth ₹20,557 crore in May 2022.
Market preparations
Legal hurdles cleared for NSE's issue
Jio has started marketing its proposed listing, while the Securities and Exchange Board of India (SEBI) settled all legal cases against NSE last week. This paves the way for another major listing.
The timing is crucial as India's IPO market seems to be recovering from months of valuation resets and global uncertainty.
Market impact
Bankers expect successful listings to boost investor confidence
Bankers believe that successful marquee listings will boost investor confidence, set pricing benchmarks for large issuers, and clear a crowded pipeline of companies waiting for market conditions to stabilize.
Raghav Gupta, joint CEO of IIFL Capital, noted a revival in IPO activity as market volatility has moderated and investor confidence improved.
He said many companies that had delayed launches due to global uncertainty are now gearing up to access the market.
Upcoming listings
Strong pipeline of IPOs in the works
Gupta also highlighted a strong pipeline of companies either filed or preparing to file for IPOs.
He said if market conditions remain supportive, total capital raised could approach or even exceed last year's levels.
More importantly, he expects higher quality issuers and a wider sector mix, making this cycle more sustainable.
Fundraising trends
July was the best month for IPOs so far
In July, 12 companies raised ₹28,584 crore through IPOs, the highest monthly fundraising so far this year.
Since January, some 40 companies have raised ₹51,576 crore with over half of that coming in July. These include Fractal Analytics, Shadowfax Technologies, and Aye Finance, among others.
The current pipeline spans financial services, healthcare, consumer, manufacturing, technology, and new-age businesses including Dhoot Transmissions, Zepto, Shiprocket, PhonePe, Oyo, and Milky Mist, etc.
Market challenges
Not all IPO-bound companies are rushing to market
Not all IPO-bound companies are rushing to market. Some are reassessing timing as market volatility has compressed valuations and altered issue sizes.
This has forced them to refile draft papers or defer listings altogether.
For instance, quick commerce company Zepto said last week it would raise funds through a pre-IPO private placement before proceeding with its public listing after facing steep valuation haircuts during investor roadshows.