Upcoming IPO: More than 150 companies ready to enter the stock market.

Explain that the IPO is the process when a company sells its shares to the common people for the first time, so that it can raise capital. According to merchant bankers, 150 to 200 companies are preparing to file their DRHP (Draft Red Herring Prospectus) i.e. initial documents in the coming 5-6 months. This simply means that new and possibilities are going to be revealed for common investors.

75 companies file documents
According to data from the Securities and Exchange Board of India (SEBI), more than 75 companies have filed documents related to IPO in the first five months of this calendar year. Experts believe that this number may double in the second half of the year.

Mahavir Lunavat, chairman of the Association of Investment Bankers of India (AIBI), says that the IPO market is gradually gaining momentum and the next few quarters may have more than 200 filing. This bounce indicates that the confidence of the promoters of companies has increased, liquidity is getting better in the domestic market and economic environment is also becoming favorable.

Which sector companies will bring IPO

Major sectors like technology, renewable energy, engineering, pharma, manufacturing and consumer service can lead the next wave of IPO this time. These are the sectors where investors expect big returns and companies are also resorting to the stock market to increase their valuation.

If the data is seen month -wise, January 2025 was the best month in terms of IPO filing, in which more than 25 companies filed DRHPs. After this, there was a slight decline due to market instability in February (13) and March (10). The Sensex recorded a decline of more than 5.5% in February, but again improved in March.

In April, 20 companies filed their documents with an increase of about 3.7% in the Sensex. So far in May, more than half a dozen companies have filed IPO documents, including Canara HSBC Life Insurance and Canara Roboco Asset Management.
According to the Prime database, about 70 companies have got SEBI approval and they can knock in the market anytime.

Prateek Lunkar, managing director of Axis Capital, said, “The IPO market will initially be cautious, but will soon open for more companies. If the market remains stable, then the second half of the year can be extremely spectacular in terms of IPO.”

The previous year i.e. 2024 IPO was recorded, in which 91 companies raised more than Rs 1.60 lakh crore. At the same time, till April this year, 10 companies have raised a total of Rs 18,704 crore.