56 IPOs done, 65 awaiting SEBI approval and a pipeline of 211 DRHPs already approved last fiscal. The 2025 version of the great Indian IPO rush is mind-boggling. What started as a trickle is slowly taking up humongous proportions. Literally every second day, you get to hear about a mega Rs 10,000 crore-plus issue. International broking house Jefferies says that the sharp market rebound from March lows has triggered an equity supply, and this deluge is on expected lines.
One of the interesting aspects of the current rebound in the markets, is that it has “reignited equity issuance activity in the last 2 months”, given the elevated valuations.
Jefferies on equity supply in Indian markets: It’s raining IPOs
The report elaborated on how the “pipeline is still large with potential disinvestments coming. The near-term equity supply pipeline also remains robust, with over 65 IPOs awaiting regulatory clearance, expected to hit the market in the coming months.”
In FY25, 211 IPO DRHPs were filed with SEBI and FY26 has already seen 56 IPO filings in 3 months, indicating continued momentum. According to estimates by Jefferies, “a supply pipeline of $60-80 billion” is expected in the remaining 9 months of FY26.
What’s particularly striking is that the pipeline comprises marquee IPOs in the internet, capital markets, telecom and QIPs by the financial sector among key fresh issues anticipated. Additionally, as highlighted in the fiscal note by Jefferies, “Achieving the disinvestment target of Rs 47,000 crore for FY26 is critical for the government.”
Jefferies on equity supply in Indian markets: The top contributors
According to Jefferies, “deal values are more than $17 billion over May and June, with deals in June higher than $10 billion.” The report stated that this $8 billion+ run-rate every month “is a tad higher than the peak we saw in H2CY24.” Just to remind our readers, the second half of 2024 also saw a deluge of promoter exits, PE action and active deployment of other fund raising instruments.
So far the surge in equity supply in the last two months, “large promoter/PE exits accounted for around 75% of the total equity supply – with the exit split 48%/52% between foreign/domestic owners. The balance 25% of supply has come from QIPs and IPOs,” Jefferies added in its report
Jefferies top picks now
Overall, in the markets, Jefferies expects “the broader index to move sideways, ”given that the supply pipeline remains strong and valuations are elevated. However, they see several bottom-up opportunities and are ‘Overweight’ on Bharti, financials, cement, two-wheelers and select real estate.