Upcoming IPO 2025: The Indian stock market is witnessing an impressive surge in Initial Public Offerings (IPOs), a trend that is likely to continue in 2025. According to Sundaraman Ramamurthy, CEO of the Bombay Stock Exchange (BSE), over 90 companies have already applied for IPOs this year. These companies are expected to raise a total of more than ₹1 lakh crore, making it an exciting year for investors looking to engage in the booming IPO landscape.
Expectations of IPOs Exceeding ₹1 Lakh Crore
As per the draft papers submitted, the aggregate funds being raised are projected to surpass ₹1 lakh crore. There is anticipation that more companies will enter the IPO market, indicating a robust flow of capital expected to exceed this threshold.
In 2024, a total of 91 major companies took the leap to become publicly listed on the BSE and NSE (National Stock Exchange), raising an astounding ₹1.6 lakh crore, the highest amount recorded to date. This surge in public equity fundraising suggests a growing investor interest in the Indian stock market, signaling that the IPO boom is far from over.
Notably, the overall public equity fundraising has doubled, culminating in a total of ₹3.73 lakh crore raised. Reports from Reuters indicate a growing trend where more Offers for Sale (OFS) are emerging in the increasing number of IPOs, highlighting a strategic shift in how companies are seeking capital.
Profits at BSE
In the context of Offers for Sale, companies sell existing shares held by large shareholders rather than issuing new shares for raising funds. Ramamurthy aims to decrease the percentage of OFS and instead, encourage companies to issue new shares for more substantial capital buildup.
According to East India Securities, BSE’s revenue from listing fees reached ₹1.57 billion in the first half of 2024-25, a notable increase from ₹1.3 billion the previous year. This highlights the financial robustness of BSE amidst increasing IPO activities.
Revenue from IPOs and New Regulations
While revenue from IPOs is anticipated to witness some fluctuations due to newly implemented stringent regulations governing derivative trading in India, the overall impact remains to be seen. Since September, these new rules have resulted in a 40% drop in derivative trading, accompanied by a 15-20% decrease in premiums.
Strategies for Increasing BSE’s Revenue
This year, three of six new regulatory measures will come into effect, potentially impacting market dynamics. To bolster its income sources, BSE is strategizing on expanding its index services and has planned the launch of 15 new indexes.
Additionally, BSE is considering an expansion of co-location services aimed at fostering high-frequency trading and algorithmic trading. This strategic pivot could enhance BSE’s trading volume and revenue, paving the way for significant opportunities for the Indian stock market in 2025. However, no final decision has been made regarding these expansions yet.
| Year | Number of IPOs | Total Capital Raised (in ₹ crore) |
|---|---|---|
| 2024 | 91 | 1.6 lakh |
| 2025 (Projected) | 90+ | 1 lakh+ |