IPO Market Shows Signs of Revival with 79 Listings in 2025 So Far

Mumbai, May 22: India’s primary market is showing signs of a revival as nine companies went public in May, reflecting improved investor sentiment and renewed activity. With these additions, the total number of IPO listings in 2025 has reached 79, although the pace still trails last year’s tally of 131 listings by this point.

The resurgence in IPO activity is driven largely by small and medium enterprises (SMEs). Eight of the nine listings this month came from the SME segment, with Ather Energy being the sole mainboard debut since February. The listings come after a cautious start to the year when many companies held back due to tepid market conditions.

Investor appetite, particularly among retail participants, appears to be making a gradual comeback. Two SME IPOs—Srigee DLM and Virtual Galaxy Infotech—drew strong interest, being subscribed 456 times and 178 times respectively. Ather Energy also saw decent traction with its retail portion subscribed two times.

Recent Listings in May 2025

However, post-listing performance has been mixed. Six of the nine newly listed stocks are currently trading below their issue prices. Arunaya Organics has emerged as the biggest underperformer, down 30% from its IPO price, followed by Kenrik Industries and Accretion Pharmaceuticals, each trading about 20% lower. On the other end, Srigee DLM has surged over 125% from its issue price, while Virtual Galaxy Infotech is trading 23% higher.

Looking ahead, IPO activity is expected to remain strong. Four more companies are slated to debut by the end of May. These include two mainboard players—Belrise Industries and Borana Weaves—scheduled to list on May 28 and May 27, respectively. The remaining two, Unified Data Tech Solutions and Dar Credit Capital, belong to the SME segment.

The outlook for June also appears optimistic. Bidding is expected to open later this month for three mainboard IPOs—Prostarm Info Systems, Aegis Vopak Terminals, and Schloss Bangalore Limited—with listings anticipated in the first week of next month.

Despite the recent pick-up, the total number of IPOs this year remains below last year’s record-setting trend. In 2024, India’s primary market witnessed a historic 340 IPOs, driven by bullish investor sentiment and robust valuations. In contrast, companies in early 2025 delayed or reduced the size of their offerings amid volatile market conditions.

The SME segment, typically known for strong retail interest, also witnessed muted activity earlier in the year. Most SME IPOs struggled to attract the kind of oversubscription levels seen in 2024, when retail books were often filled over 100 times.

IPO Market Snapshot: 2025 vs 2024 (Jan–May)

Bottomline

As market sentiment continues to stabilise, all eyes are on the June pipeline. A sustained pickup in both mainboard and SME IPOs will be key to determining whether 2025 can match the strength of the previous year’s primary market performance.