India's primary market is gearing up for one of its most active months in recent years, with July poised to witness a substantial rush of mainboard Initial Public Offerings (IPOs). Investment bankers project that companies could collectively raise approximately Rs 45,000 crore, marking it as one of the largest fundraising periods for the domestic equity market.
Key Players Driving the Rush
Among the prominent companies expected to launch their IPOs in July are SBI Funds Management, Manipal Health Enterprises, and quick-commerce platform Zepto. SBI Funds Management is anticipated to lead with the largest issue, estimated at around Rs 12,000-13,000 crore. Manipal Health Enterprises is expected to follow with an offering of about Rs 11,000 crore, while Zepto's IPO is projected to be around Rs 8,000 crore. Other notable entities lined up include Juniper Green Energy, Horizon Industrial Parks, Innovatiview, Laser Power & Infra, Kusumgar, Gaja Capital, and TruHome Finance (formerly Shriram Housing Finance).
Market Sentiment and Expert Views
This robust pipeline emerges amid an improving market sentiment, bolstered by resilient benchmark indices, abundant domestic liquidity, and favorable macroeconomic conditions. The optimism is further fueled by recent Draft Red Herring Prospectus (DRHP) filings from significant players such as Reliance-backed Jio Platforms and the National Stock Exchange (NSE), signaling a sustained revival in the primary market.
Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, notes that while strong market sentiment encourages promoters, the current pipeline also reflects the increasing maturity of Indian businesses. "Companies are coming to market with better governance standards, stronger profitability, and clearer growth strategies," Shah stated, highlighting active sectors like new-age businesses, healthcare, technology, manufacturing, and consumer. He added that despite a busy IPO calendar potentially absorbing liquidity, continuous mutual fund inflows and a supportive macroeconomic backdrop should sustain demand.
Kamraj Singh Negi, Managing Director and CEO of Investment Banking at Pantomath Capital, echoed this sentiment, emphasizing a healthier and more mature market. Negi advised investors against chasing IPOs based solely on subscription figures or market buzz. "Every IPO should be evaluated on its own merits with a long-term investment perspective, considering factors like the quality of the business, financial performance, and utilization of proceeds," he urged.
Investor Considerations and Outlook
Market participants also advise investors to look beyond headline issue sizes. With several large offerings expected in a short span, the market's capacity to absorb these listings, along with valuation comfort and earnings growth potential, will be closely monitored.
Thomas V. Abraham, Research Analyst at Mirae Asset Sharekhan, recommends focusing on the strength of the underlying business rather than just valuation multiples. "This is a valuation-versus-peers-plus-growth-story exercise, not a valuation-versus-peers exercise alone," Abraham explained, pointing out that a business might appear cheap but have a limited growth runway, while an expensive one could be a good investment if its earnings growth justifies the price. He also referenced past IPO experiences where many listings in FY25 came at valuations already factoring in future growth, leading to moderated listing gains and some trading below issue prices, underscoring the importance of valuation discipline and business quality.
The primary market has already shown signs of revival this year, with 18 mainboard IPOs launched until April, and activity picking up after a May slowdown. Industry estimates suggest nearly 65 companies are awaiting regulatory approvals to raise over Rs 2 lakh crore, indicating that the strong issuance pipeline could extend well beyond July. Experts believe investors focusing on fundamentally strong businesses with credible management, sustainable earnings growth, and reasonable valuations are likely to be rewarded.