IPO rush ahead: Zepto, Shiprocket and 12 more firms to hit primary market; eye Rs 25,000 crore-plus fundraising

India’s IPO market is heading for another packed month, with a fresh crop of companies across sectors waiting in a queue. More than a dozen firms are expected to launch their maiden public offerings in the coming weeks, with the proposed issues together targeting fundraising of over Rs 25,000 crore through a combination of fresh equity and offer-for-sale (OFS).The upcoming line-up spans quick commerce, housing finance, logistics, education, dairy, asset management and engineering, highlighting the breadth of companies looking to access the capital markets.Quick commerce company Zepto is set to lead the fundraising calendar with a proposed fresh issue of up to Rs 8,010 crore, along with an OFS of up to 11.34 crore equity shares.Housing finance company Truhome Finance has lined up a Rs 3,000-crore IPO, equally split between a fresh issue of up to Rs 1,500 crore and an OFS of the same amount.

Education infrastructure company Elevate Campuses plans to raise Rs 2,550 crore entirely through a fresh issue. Logistics platform Shiprocket, meanwhile, has filed for a Rs 2,342.35-crore IPO, comprising a fresh issue of up to Rs 1,100 crore and an OFS worth Rs 1,242.35 crore.Innovatiview India is planning to raise up to Rs 2,000 crore entirely through an OFS, while Milky Mist Dairy Food has proposed a Rs 1,553-crore public issue.The list of companies preparing to enter the market also includes Dhoot Transmission, ARCIL (Asset Reconstruction Company India Ltd), Ardee Industries, Gaja Alternative Asset Management, Rays of Belief, Hy-Tech Engineers, Shankesh Jewellers and Learnfluence Education.

Primary market momentum continues

The next wave of IPOs follows sustained activity in the primary market this year which saw total of 36 companies already launching their public issues.The pipeline remains active even before the next batch arrives. Manipal Health Enterprises is scheduled to open its IPO on July 29, followed by Juniper Green Energy on July 30. MV Electrosystems is also set to launch its public issue next week.Market participants expect fundraising activity to remain robust as companies look to take advantage of favourable conditions and improving investor sentiment.Bhavesh Shah, MD & head-investment banking at Equirus Capital, said improving market conditions have prompted companies that had deferred their plans to move ahead with public issues.“With markets stabilising and investor sentiment improving, companies that were waiting on the sidelines are now moving ahead with their IPO plans,” said Bhavesh Shah, MD & head-investment banking at Equirus Capital.

Long-term outlook

Despite periods of market volatility, Shah said the long-term outlook for India’s IPO market remains strong, with equity continuing to gain importance as a source of growth capital.“The primary market has undergone a structural transformation, with equity becoming an increasingly preferred source of growth capital. While there will always be tactical pauses driven by market volatility, the underlying pipeline remains very strong. I continue to expect India to raise around $20 billion through IPOs this calendar year,” he said.He added that investor behaviour is becoming more selective, making pricing an important factor for new listings.“Well-priced IPOs are likely to continue delivering healthy returns, while aggressively valued offerings may witness limited upside, as investors become increasingly selective rather than indiscriminately bullish.”