Are Nearly 90 Companies Preparing for IPOs in Early 2025?
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Synopsis
Despite ongoing global market challenges, nearly 90 companies have showcased their ambition to go public by filing DRHPs with SEBI. This trend indicates a robust interest in IPOs, even as the actual number of market entries remains low compared to last year. What does this mean for investors and the market?
Key Takeaways
- 90 companies have filed DRHPs with SEBI in early 2025.
- January saw the highest activity with 28 filings.
- Only 9 IPOs launched this year, compared to over 25 in 2024.
- Biopharma IPOs surged 68.4% YoY in 2024.
- Market volatility is influenced by global tensions.
New Delhi, May 22 (NationPress) In the face of persistent global market fluctuations, almost 90 businesses have filed draft red herring prospectuses (DRHPs) with the Securities and Exchange Board of India (SEBI) from January to May 2025, indicating a robust interest in public offerings.
According to data sourced from the SEBI website, the month of January recorded the highest filing activity, with 28 firms submitting their draft documents, followed by February with 15, March with 11, April with 24, and 12 filings thus far in May.
This increase in DRHP submissions occurs during a period when the actual number of initial public offerings (IPOs) entering the market remains significantly lower compared to the same timeframe last year.
Only nine companies have launched their shares in the mainboard segment between January and May this year, a stark contrast to over 25 during the same timeframe in 2024.
Noteworthy companies that have applied for IPOs this year include Canara HSBC Life Insurance, Canara Robeco Asset Management Company, Anand Rathi Share and Stock Brokers, and WeWork India.
Submitting a DRHP is the initial step for companies seeking to raise capital through an IPO. This document provides essential details such as financial performance, business operations, risks, and other mandatory disclosures outlined by the SEBI.
While there is a consistent interest in IPOs, the sluggish listing momentum reflects broader worries stemming from global uncertainties.
The Indian equity markets have witnessed notable volatility in 2025, influenced by geopolitical tensions and tariff-related actions, especially from the United States.
Since the year commenced, the Sensex has achieved a return of 2.73 percent, while the Nifty has increased by approximately 3 percent, indicating a sense of cautious optimism amidst a challenging global backdrop.
In the meantime, biopharmaceutical IPOs experienced a remarkable resurgence in 2024, surging 68.4 percent year-on-year (YoY) to reach $8.52 billion, as per a recent report from GlobalData.
A total of 50 IPOs were finalized globally in this sector this year, a rise from the $5.06 billion secured in 2023, marking it as the most successful year for biopharma IPOs since 2021, the report highlighted.
Point of View
It's clear that this influx of DRHP filings reflects a steadfast commitment from companies to engage with public markets, despite the current volatility. The interest in IPOs showcases resilience, yet it's crucial to remain vigilant about the underlying market conditions that could influence these offerings. Our focus remains on delivering trustworthy updates to our audience.
NationPress
20/07/2025
Frequently Asked Questions
What is a DRHP?
A Draft Red Herring Prospectus (DRHP) is a preliminary registration document filed by companies with SEBI when they plan to raise funds through an IPO. It contains essential information about the company's business, financials, and risks.
Why are IPO filings important?
IPOs provide a way for companies to raise capital from public investors. The number of IPO filings can indicate market confidence and investor interest in specific sectors or the economy as a whole.
How many IPOs have been launched in 2025?
As of now, only nine IPOs have been launched on the mainboard segment in 2025, which is significantly lower than the over 25 IPOs during the same period last year.
What sectors are leading in IPO filings?
The biopharmaceutical sector has shown notable growth in IPO filings, with a significant increase in activity and capital raised compared to previous years.
What factors are affecting the IPO market?
Global market volatility, geopolitical tensions, and tariff-related measures, particularly from the United States, are influencing the IPO market and overall investor sentiment.
