IPO Rush Returns: What’s Fueling the 2025 Listing Spree?

India’s IPO (Initial Public Offering) market has picked up again. After a three-month lull, May 2025 has seen renewed activity, with at least seven companies launching public offerings. Together, these companies aim to raise around ₹7,000 crore. This increase in listings reflects improving market conditions, regulatory clearances, and a rise in corporate fundraising plans.

With approximately 12 IPOs expected in June and several companies already approved by SEBI, the pace of new listings may continue. This article explains the reasons behind the current rise in IPOs and what it shows about the state of the market.

IPO Activity Resumes After a Gap

IPO	Type	Opening Dt.	Closing Dt.	Issue Price Band	Issue Size (in shares)	Issue Size (in ₹ Crore)	Listing at
Unified Data-Tech Solutions Ltd	SME	May 22, 2025	May 26, 2025	₹260 to ₹273	52,92,000	144.47	BSE SME
Belrise Industries Ltd	Mainboard	May 21, 2025	May 23, 2025	₹85 to ₹90	23,88,88,888	2,150.00	BSE, NSE
Dar Credit and Capital Ltd	SME	May 21, 2025	May 23, 2025	₹60	42,76,000	25.66	NSE SME
Victory Electric Vehicles International Ltd	SME	May 20, 2025	May 23, 2025	₹72	56,47,000	40.66	NSE SME
Borana Weaves Ltd	Mainboard	May 20, 2025	May 22, 2025	₹216	67,08,000	144.89	BSE, NSE
Aegis Vopak Terminals Ltd	Mainboard	May 26, 2025	May 28, 2025	₹223 to ₹235	11,91,48,936	2,800.00	BSE, NSE
Schloss Bangalore Ltd (Leela Hotels)	Mainboard	May 26, 2025	May 28, 2025	₹413 to ₹435	8,04,59,769	3,500.00	BSE, NSE
Prostarm Info Systems Ltd	Mainboard	May 27, 2025	May 29, 2025	₹95 to ₹105	1,60,00,000	168	BSE, NSE
Astonea Labs Ltd	SME	May 27, 2025	May 29, 2025	₹128 to ₹135	27,90,000	37.67	BSE SME
Nikita Papers Ltd	SME	May 27, 2025	May 29, 2025	₹95 to ₹104	64,94,400	67.54	NSE SME
Blue Water Logistics Ltd	SME	May 27, 2025	May 29, 2025	₹132 to ₹135	30,00,000	40.5	NSE SME
Neptune Petrochemicals Ltd	SME	May 28, 2025	May 30, 2025	₹115 to ₹122	60,00,000	73.2	NSE SME

The beginning of 2025 saw limited IPO activity. Between January and April, the market had very few listings. Companies were cautious due to the uncertain business environment following the 2024 national elections, geopolitical tensions, and trade uncertainties. 

May brought a noticeable change. Seven companies launched their IPOs, including TBO Tek, Indegene, Aadhar Housing Finance, and Awfis Space Solutions. These offerings came from various sectors such as technology, healthcare, housing finance, and commercial real estate.

Adding to this momentum, Schloss Bangalore, the operator of The Leela luxury hotels, has announced the start date of its ₹3,500 crore IPO. Similarly, Aegis Vopak Terminals, which manages LPG and other liquid commodities storage infrastructure, has unveiled the timeline for its upcoming ₹2,800 crore share sale. These announcements point to a pipeline that includes larger-scale listings alongside mid-sized offerings. Source: Economic Times

While this spread shows that multiple sectors are seeing the potential to raise funds through public listings, here’s a look at what’s driving the surge. 

Factors Driving the 2025 IPO Momentum

Several practical reasons explain why more companies are now choosing to go public.

1. Market Conditions Are Steady

Stock market indices have consistently performed in recent months. Institutional and retail participation has remained strong, giving companies more confidence in achieving successful IPO outcomes.

2. Faster SEBI Approvals

SEBI has cleared IPO applications for over 20 companies, allowing them to move forward with their public offerings. This faster pace of approvals reduces delays for companies and helps them plan their market entries more efficiently. Source: Economic Times

3. Post-Election Stability

The uncertainty around national elections in 2024 caused companies to postpone their IPO plans. Now that the election period has passed and policy continuity has been maintained, companies are proceeding with plans that were earlier on hold.

4. Sector-Specific Growth

The companies that launched IPOs in May are from sectors that have seen stable or rising demand. For example:

• TBO Tek serves the travel and tourism industry, which is seeing a recovery.
• Indegene operates in healthcare technology, an area with consistent global demand.
• Aadhar Housing Finance focuses on affordable housing, which remains a key area in semi-urban markets.
• Awfis Space Solutions offers co-working spaces, which have gained popularity with hybrid work models.

These examples indicate that IPO interest is not limited to one industry but reflects developments across multiple areas.

The Road Ahead: June and Beyond

The IPO pipeline remains active. SEBI has approved nearly 20 IPOs, and depending on overall market stability, 10 to 12 companies are expected to launch their offerings in June. Source: Economic Times

In addition to this, industry reports suggest a significant build-up for the rest of the year. As many as 150 companies are expected to issue IPOs over the next six months, pointing to a strong pipeline driven by small and mid-sized firms as well as larger enterprises preparing to list. Source: News18

These upcoming listings will likely span sectors such as fintech, manufacturing, consumer services, and clean energy. The broader participation reflects strong business sentiment and an increasing interest in public fundraising as an expansion strategy.

Retail participation is also expected to grow, supported by easier application methods through UPI and simplified digital platforms, making the IPO process more accessible to individual investors.

SME IPOs Adding to the Momentum

Alongside mainboard listings, the SME IPO segment has remained active, with several smaller companies tapping the market for growth capital. Recent SME IPOs include Magenta Lifecare Ltd, Trident Techlabs Ltd, and Creative Graphics Solutions India Ltd, among others. These listings reflect growing interest from smaller enterprises in leveraging public equity for expansion and visibility. The consistent participation in this segment indicates that investor appetite is not limited to large-cap names alone.

Wider Market Signals

This phase of IPO activity reflects an improving fundraising environment for Indian companies. Regulatory timelines are shorter, investor participation is growing, and digital infrastructure for IPO access has become more efficient.

Companies are using IPOs to raise funds, improve transparency, and strengthen their market presence. The listing process requires greater financial discipline, which can benefit companies long-term.

While market conditions can still change, the increase in IPOs indicates that the business ecosystem is preparing for growth in the coming quarters.

Conclusion

After a three-month gap, the IPO market in India has become active again. With ₹7,000 crore expected to be raised in May 2025 and many more listings scheduled in the near future, the pace of activity has increased. Several factors—market stability, faster regulatory approvals, and recovery in key sectors—contribute to this trend.

This increase in listings may continue through the rest of the year if current conditions remain unchanged. The activity observed in May provides a clear example of how companies adjust their fundraising strategies in response to favorable market signals.

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