Stockgram

After a three-month lull, India's primary equity capital market is regaining momentum. Of the seven companies planning to go public, two have already launched their initial public offerings (IPOs), while three more are scheduled to open next week. The remaining two are expected to file their IPO papers in the coming week, with more firms preparing to tap the market in June.





Market participants said that primary market activity has returned to levels last seen in September-October of the previous year, a period during which 18 IPOs were listed. Despite the pickup in activity, most companies are opting for reduced valuations.





Among the seven companies, Belrise Industries and Borana Weaves have already rolled out their IPOs.





Schloss Bangalore, the parent company of luxury hotel chain The Leela, is scheduled to launch its ₹3,500 crore IPO on May 26.





Aegis Vopak Terminals, which operates LPG storage facilities, will also open its ₹2,800 crore IPO on May 26. The company recently scaled down its issue size from the previously planned ₹3,500 crore.





Prostarm Info Systems, a Maharashtra-based manufacturer of power solutions, will open its ₹168 crore public issue on May 27.





Additionally, Arisinfra Solutions and Scoda Tubes are planning to raise ₹600 crore and ₹275 crore, respectively, with their IPOs expected to be filed in the coming week.





Together, these seven companies aim to raise around ₹10,250 crore from the public markets.





Arun Kejriwal, founder of KRIS, told CNBC-TV18 that market sentiment has shifted, and the perception of IPO-bound companies has evolved. As a result, many of these firms are now open to raising less capital than originally planned. Most are now realistic about their funding requirements and have adopted a balanced approach — combining fresh issues with reduced offers for sale (OFS), trimming the OFS portion in several cases.





When asked whether the number of IPOs will rise following a three-month hiatus, Kejriwal responded with a clear "yes." He also affirmed that these companies will need to come to the market with more investor-friendly valuations.





He explained that companies opting to go public now have weighed the pros and cons and concluded that they need capital. Their business plans are already structured around the assumption that this funding will come through the IPO, so delaying is not an option. Fundraising activity is likely to grow, and in a challenging market, valuations will remain reasonable. However, if market conditions improve and fundraising becomes easier, companies are likely to raise their price expectations again.





The surge in new listings has tapered off, with only 10 companies launching their IPOs in 2025 so far, primarily due to market volatility driven by both global and domestic factors. This compares to as many as 30 companies that had gone public by May 2024.





Despite this slowdown, a major number of draft filings continue to be submitted, indicating strong interest once market conditions improve.





According to a report by Axis Capital, 57 companies have received observations from the capital markets regulator SEBI. Many of these firms are expected to enter the market in the coming months, indicating a potentially active IPO season ahead.