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

India’s primary market is expected to see a selective revival in June after a two-month lull, with several companies lining up public issues despite geopolitical uncertainty and 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.

Improved Market Conditions

Market participants said there appears to be greater comfort among issuers than a couple of months ago, with companies recognizing that markets rarely offer perfect visibility and many are willing to proceed if they see stable investor demand and acceptable valuations.

Market Impact and Details

• According to Prime Database, 161 companies with valid SEBI approvals and an estimated issue size of about ₹2.42 lakh crore are awaiting launch.
• Another 74 companies seeking to raise around ₹1.53 lakh crore are awaiting regulatory clearance.
• Some of the larger approved issues awaiting launch are Credila Financial Services and Dorf-Ketal Chemicals India’ IPO worth ₹5,000 crore each, followed by Continuum Green Energy’s ₹3,650 crore issue, Hero FinCorp’s ₹3,600 crore, and Veritas Finance’s ₹2,800 crore offer.

Market participants said a stabilisation in sentiment could unlock a much stronger IPO calendar in the second half of FY27.

Key Takeaways

• India’s primary market is expected to see a selective revival in June after a two-month lull.
• Several companies are lining up public issues despite geopolitical uncertainty and volatility.
• Market participants said 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 in recent months due to geopolitical uncertainty and volatility, but there are signs of a selective revival in June.

Which companies are lined up for public issues 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.

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

Market participants said there appears to be greater comfort among issuers than a couple of months ago, with companies recognizing that markets rarely offer perfect visibility and many are willing to proceed if they see stable investor demand and acceptable valuations.

Conclusion

India’s primary market is expected to see a selective revival in June after a two-month lull, with several companies lining up public issues despite geopolitical uncertainty and volatility. Market participants said a stabilisation in sentiment could unlock a much stronger IPO calendar in the second half of FY27. As the market continues to evolve, investors and issuers will need to remain vigilant and adapt to changing conditions.