India’s stock market is preparing for a busy week as four companies plan to raise around 150 billion rupees (US$1.7 billion) through initial public offerings (IPOs).

This increase in activity marks a rebound in the country’s primary market after a slow start to the year.

Three companies—Kalpataru Ltd., Ellenbarrie Industrial Gases Ltd., and Globe Civil Projects Ltd.—will begin their share sales on June 24, 2025.

HDB Financial Services Ltd., a subsidiary of HDFC Bank Ltd., is set to launch its IPO on June 25, 2025 with a target of raising US$1.4 billion, according to Moneycontrol.

This uptick in IPO activity follows a 12% rally in the NSE Nifty 50 Index since March.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ RBI’s liquidity injection creates ideal conditions for IPO boom

The current surge in IPO activity directly follows the Reserve Bank of India’s significant monetary policy actions, including a 50 basis point repo rate cut (the largest in five years) coupled with a 100 basis point reduction in Cash Reserve Ratio (CRR)1.

This combination has injected approximately ₹2.5 trillion of liquidity into India’s banking system, creating favorable conditions for companies seeking public listings1.

Market analysts note that declining fixed deposit rates are pushing retail investors toward equity markets, creating a receptive environment for well-priced IPOs1.

This pattern mirrors historical trends where periods following major central bank easing typically see accelerated capital raising activity, with companies rushing to take advantage of improved investor sentiment.

2️⃣ Companies shifting toward more realistic valuations post-pandemic

India’s IPO landscape in 2025 shows a notable trend toward more conservative pricing strategies compared to the exuberant valuations seen during the pandemic era1.

This shift is evident in HDB Financial’s offering, which despite its size (₹12,500 crore), has set a relatively modest price band of ₹700-740 per share despite the company’s strong financial performance – a profit after tax of ₹2,175.9 crore in FY252.

The company’s valuation reflects its substantial market position as India’s seventh-largest diversified retail-focused NBFC with a gross loan book of ₹902.2 billion3.