IPO Market Thrives Amidst Increasing Demand, Calls for Strong Participation: Sunder Iyer, Deloitte India.
India’s IPO market is entering a new phase characterized by heightened activity and robust domestic liquidity. With 168 companies having received approval from the Securities and Exchange Board of India (Sebi) to raise approximately ₹2.60 lakh crore, the primary market is set for elevated performance over the next few years. As per industry experts like Sunder Iyer from Deloitte India, the structural shift towards more consistent domestic risk capital underpins this surge. Local institutions are now better positioned to underwrite a wider range of IPOs, including those that were previously reliant on foreign investments, which signals a burgeoning domestic demand for new investment opportunities.
The sentiment in the grey market reflects a positive outlook, although the situation remains complex. The influx of both approved and pending IPOs is creating a crowded landscape, where investors will need to be increasingly selective. With about 70 additional companies awaiting regulatory approval to raise nearly ₹1.41 lakh crore, the market may see greater differentiation among offerings. According to experts, companies that demonstrate strong governance and financial discipline are likely to attract premium valuations, while others may find it challenging despite existing sectoral tailwinds and growth potential.
For Indian investors, this evolving landscape requires a more discerning approach. The focus will shift towards identifying companies with compelling growth narratives that also exhibit institutional-quality governance and transparency. As the bar for successful IPO entries rises, the need for rigorous evaluation of business models, earnings quality, and valuations becomes critical. This environment fosters an opportunity for deeper engagement in secondary market activities and follow-on offerings, enhancing the potential for differentiated returns. The new IPO phase thus represents both opportunities and challenges for Indian investors navigating this increasingly competitive market.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)