India’s IPO Market Poised for Selective Revival in June Amid Geopolitical Uncertainty

India’s IPO market is poised for a selective revival in June, following a two-month lull, as a handful of companies line up public issues despite larger issuers remaining cautious amid geopolitical uncertainty and market volatility.

Mainboard IPO Activity Set to Resume in June

The IPO of Hexagon Nutrition, an offer-for-sale (OFS) worth about ₹139 crore, will open for subscription on June 5, while CMR Green Technologies’ ₹630-crore OFS is scheduled during June 3-5.

In the SME segment, Merritronix, Liotech Industries, Vahh Chemicals and Genxai Analytics are among companies scheduled to tap the market during the month.

Improving Market Conditions

Market participants said that companies are recognizing that markets rarely offer perfect visibility and many are willing to proceed if they see stable investor demand and acceptable valuations.

“Companies are not cancelling plans but waiting for favourable issuance windows amid geopolitical uncertainty and valuation concerns,” said Narinder Wadhwa, Managing Director and Chief Executive Officer, SKI Capital Services.

Large-Scale IPOs in the Pipeline

• Credila Financial Services and Dorf-Ketal Chemicals India’ IPO worth ₹5,000 crore each
• Continuum Green Energy’s ₹3,650 crore issue
• Hero FinCorp’s ₹3,600 crore
• Veritas Finance’ ₹2,800 crore offer

Other big names like Reliance Jio Platforms, the National Stock Exchange, Zepto, and SBI mutual fund are also in the IPO pipeline.

Key Takeaways

• The IPO market is expected to see a selective revival in June after a two-month lull.
• Companies with strong fundamentals and reasonable pricing may proceed with their IPOs.
• A stabilisation in sentiment could unlock a much stronger IPO calendar in the second half of FY27.

FAQs

What is the current state of the IPO market in India?

The IPO market in India has been subdued for the past two months, with only two mainboard IPO launches in April and none in May.

Which companies are scheduled to launch their IPOs in June?

The IPO of Hexagon Nutrition and CMR Green Technologies are scheduled to launch in June, along with several SME issuances.

What are the key factors driving the IPO market in India?

The key factors driving the IPO market in India include geopolitical uncertainty, market volatility, and valuation concerns.

Conclusion

The IPO market in India is expected to see a selective revival in June, with a handful of companies lining up public issues. However, larger issuers remain cautious amid geopolitical uncertainty and market volatility. As the market stabilises, a much stronger IPO calendar is expected in the second half of FY27. Investors and issuers alike will be closely watching the market for any signs of improvement.