A flurry of Indian companies is making a last-minute dash to the public markets, aiming to attract global investors in a rush of Initial Public Offerings (IPOs) before a key regulatory deadline.
This surge in activity highlights both the strong underlying appetite for Indian equities and a growing sense of urgency among firms to capitalize on favorable market conditions.
More than a dozen Indian companies have either launched or announced IPOs worth a collective 187 billion rupees ($2.1 billion) in the two-week period leading up to August 12, according to data compiled by Bloomberg.
This date is not arbitrary; the cutoff marks the last day that companies can use their audited financial statements from the March quarter in their IPO filings, a critical detail for many overseas investors.
While Indian regulations permit the use of financials in IPOs that are up to 180 days old, the stricter guidelines of the US Securities and Exchange Commission (SEC) cap this period at 135 days.
Investment bankers note that foreign investors, particularly those from the US, often prefer or outright require these more recent, audited financial statements in an IPO prospectus before committing significant capital.
A confluence of factors: liquidity, seasonality, and tariff jitters
While this quarterly rush to meet financial reporting deadlines is a somewhat routine occurrence, companies have had extra motivation to act this time around.
The market is currently flush with ample liquidity, and there are growing concerns about a potential economic slowdown in the coming weeks, driven in part by US President Donald Trump’s threats to raise tariffs on Indian exports.
This has led many firms to become eager to lock in relatively high valuations while market conditions remain favorable.
“The rush is being driven by factors, including seasonality and ample liquidity in the market,” Prakash Bulusu, joint CEO at IIFL Capital, told Bloomberg.
However, he also sounded a note of caution for the near future: “volatility in secondary markets, triggered by US tariff concerns may slow issuances.”
Bulusu suggested that the next major wave of IPOs may not kick off until mid-to-late September, in the lead-up to India’s festive quarter.
A flurry of deals: billions raised, more to come
The recent activity has been significant. Around ten companies, including prominent names like National Securities Depository Ltd., Aditya Infotech Ltd., and Brigade Hotel Ventures Ltd., have collectively raised over 97 billion rupees ($1.1 billion) between July 25 and August 1, according to Bloomberg data.
And more deals are on tap for this week. Knowledge Realty Trust REIT, JSW Cement Ltd., All Time Plastics Ltd., and Highway Infrastructure Ltd. are all aiming to raise a combined total of over 90 billion rupees ($1 billion).
A potentially record-breaking year for Indian IPOs
This latest flurry of activity is part of a much larger trend. So far this year, from January through July, Indian companies have raised approximately $7.28 billion through IPOs, according to data compiled by Bloomberg.
Looking ahead, Jefferies Financial Group projects that they could raise another $18 billion in the second half of 2025. If that forecast materializes, the total fundraising for the year could surpass last year’s record of $21 billion.
Among the major big-ticket offerings expected in the second half of the year are Tata Capital Ltd., which is reportedly targeting a $2 billion raise, and the Indian unit of South Korean electronics giant LG Electronics Inc., which is planning a billion-dollar IPO.
“India’s IPO momentum is underpinned by strong domestic liquidity, macro resilience, and a deep deal pipeline,” said Gaurav Sood, managing director of equity capital markets at Avendus Capital.
We expect over 10 IPOs north of $1 billion by year-end. The market has the depth to absorb them.
The post India’s IPO frenzy: why companies are rushing to raise $2.1B before Aug 12 appeared first on Invezz