After a sluggish start to 2025, the Indian primary market is showing signs of revival, with merchant bankers indicating that over a dozen companies have lined up their Initial Public Offerings (IPOs) for the next three to six months. This renewed optimism is reportedly buoyed by a stabilizing secondary market and easing geopolitical tensions.

Among the companies preparing to tap the capital markets are HDB Financial Services, a subsidiary of HDFC Bank, National Securities Depository Ltd (NSDL), Kalpataru, Rubicon Research, All Time Plastics, Regreen-Excel EPC India, and Paramesu Biotech.

Additionally, Credila, SK Finance, Veritas Finance, Paras Healthcare, CIEL HR Services, Avanse Financial Services, Drof-Ketal Chemicals India, Brigade Hotel Ventures, and Shreeji Shipping are also looking to launch their IPOs. All these companies have already received clearance from the markets regulator, the Securities and Exchange Board of India (Sebi).

These firms are primarily mobilizing funds to support capital expenditure requirements, especially for expansion plans, repayment of borrowings, and for general corporate purposes.

This renewed activity follows the launch of six IPOs last month, including that of Schloss Bangalore, the owner of the luxury hotel chain The Leela. However, the overall IPO activity in 2025 has slowed, with only 16 firms coming out with public issues so far, a decrease from the 29 IPOs recorded in the same period last year.

The slowdown in the current year is attributed to ongoing volatility in the equity market, stemming from a mix of global and domestic factors. This is in contrast to a remarkable 2024, during which 91 maiden public issues collectively raised Rs 1.6 lakh crore, driven by robust retail participation, a resilient economy, and booming private capital expenditure.

Despite the cautious start to 2025, there are promising signs for the IPO market. A growing number of companies are filing their draft documents, and the second half of the year is expected to witness robust IPO activity.

Saahil Kinkhabwala, Director, Investment Banking, Monarch Networth Capital Ltd., stated, "We will see robust activity in the IPO markets in the second half of 2025 as a good set of companies are looking to launch their public issues. There is a good appetite among investors for attractively priced IPOs."

Pranjal Srivastava, Partner, Investment Banking, Centrum Capital, noted that the Indian IPO market's sluggish beginning in 2025 reflects cautious investor sentiment amid global economic uncertainties and domestic market volatility. "While the pipeline remains strong with several companies awaiting regulatory approvals and DRHP filing momentum continuing as last year, both issuers and investors are taking a wait-and-watch approach. We expect activity to pick up gradually during the rest of the year as market conditions stabilise and confidence returns," he added.

Currently, 65 companies have received final observations from Sebi, and another 65 are awaiting final clearance, a necessary step before launching public issues.

Among the key players, HDB Financial Services' proposed IPO includes a fresh issue of equity shares worth Rs 2,500 crore and an offer for sale (OFS) of Rs 10,000 crore by its promoter, HDFC Bank, according to the draft red herring prospectus (DRHP). HDFC Bank currently holds a 94.36 per cent stake in the non-banking financial company (NBFC). The proceeds from the fresh issue will be used to bolster HDB's Tier-I capital base, supporting future capital needs such as increased lending and business growth. Under Reserve Bank of India (RBI) mandates, HDB Financial Services, classified as an upper-layer NBFC, is required to be listed on the stock exchanges by September 2025.

Meanwhile, National Securities Depository Ltd (NSDL) plans to offer 5.01 crore shares in its IPO, a reduction from the initially proposed 5.72 crore shares, as per a recent addendum. Sebi has granted NSDL an extension until July 31, 2025, to complete its listing.

Other companies that have lined up their IPOs are also planning a combination of fresh issuance of equity shares and an offer for sale by existing investors.