The IPO Mania is on! 5 New IPOs Approved for 2025

The year 2024 set a remarkable benchmark for the Indian IPO market, but the excitement doesn't end there. As we look toward 2025, an even bigger boom in the primary markets is anticipated.

This surge is expected to be fuelled by a combination of factors, - retail investor participation, domestic inflows, and foreign portfolio investors (FPIs) showing renewed interest, despite being net sellers in the secondary markets.

The IPO landscape in India is expected to remain vibrant in 2025, with a robust pipeline already in place. Over 35 companies have received approval from SEBI to launch their IPOs, signalling a promising year for primary market investors.

As we approach the new year, here's a look at five mainboard IPOs that have received approval and are set to make waves in 2025.

#1 Ather Energy

First on the list is Ather Energy IPO.

Ather Energy, the electric two-wheeler manufacturer, has received final approval from the capital markets regulator to float its initial public offering (IPO).

Founded in 2013, the Bengaluru-based company specialises in designing and developing electric two-wheelers, battery packs, charging infrastructure, software solutions, and related accessories. Additionally, Ather manufactures battery packs and assembles its electric scooters in-house.

The company's product lineup includes two flagship series: the Ather 450 and the Ather Rizta, offering a total of seven variants.

As of 2024, Ather Energy ranks as India's fourth-largest electric two-wheeler manufacturer by sales volume, trailing Ola Electric, TVS Motor, and Bajaj Auto. According to government-run Vahan portal data, Ather sold approximately 125,569 vehicles in 2024.

Ather Energy is poised to become the second Electric Vehicle (EV) manufacturer in India to go public, following Ola Electric Mobility's stock market debut in August.

According to its Draft Red Herring Prospectus (DRHP) filed in September 2024, the IPO will comprise a fresh issue of equity shares worth Rs 31 bn and an offer-for-sale (OFS) of 22 million (m) equity shares by promoters and existing investors.

Hero MotoCorp, which holds a 37.2% stake in Ather, will not be participating in the OFS.

The company also plans to raise Rs 6.2 bn through a pre-IPO placement, which, if completed, will reduce the size of the fresh equity issuance.

Media reports suggest that Ather Energy is targeting a valuation of US$ 2.5 bn for the IPO. This marks a substantial leap from its previous valuation of US$ 1.3 bn in August 2024, following a funding round led by the National Investment and Infrastructure Fund (NIIF).

Ather Energy has detailed what it plans to do with the fresh issue proceeds from the IPO. The money will be used for setting up an E2W factory in Maharashtra, repaying debt, investing in research and development, marketing initiatives as well as general corporate purposes.

#2 Oswal Pumps

Next on the list is Oswal Pumps IPO.

The company received approval from the market regulator on 30 December to proceed with its IPO.

Oswal Pumps is known for manufacturing solar-powered and grid-connected submersible and monoblock pumps, and electric motors, all sold under the Oswal brand.

The company has executed orders for 26,270 turnkey solar pumping systems under the PM Kusum Scheme across multiple states, including Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.

The company filed its DRHP with the market regulator in September 2024. The IPO comprises a mix of a fresh issue of equity shares worth Rs 10 bn and an offer-for-sale (OFS) of up to 11.3 m equity shares by promoter Vivek Gupta.

The proceeds from the fresh issue will be utilised for funding specific capital expenditures, investing in its wholly-owned subsidiary Oswal Solar through debt or equity, establishing new manufacturing units in Karnal, Haryana, repaying debt, and addressing general corporate requirements.

Oswal Pumps operates in a competitive market, with peers such as Kirloskar Brothers, Shakti Pumps, WPIL, KSB, and Roto Pumps.

#3 Quality Power Electrical Equipment

Next on the list is Quality Power Electrical Equipment. The company received approval from the market regulator on 30 December to proceed with its IPO.

Based in Maharashtra, the company operates two manufacturing facilities in India and specialises in high-voltage electrical equipment and solutions for grid connectivity and energy transition. It also provides equipment and solutions for emerging applications, such as large-scale renewables.

The Pandyan family owns a 100% stake in the company. The IPO will comprise a fresh issuance of Rs 2.3 bn by the company, along with an offer-for-sale of 12 m equity shares by promoter Chitra Pandyan.

The company plans to allocate Rs 1.2 bn of the fresh issue proceeds for acquiring Mehru Electrical and Mechanical Engineers, and Rs 268 m for purchasing plant and machinery. The remaining funds will be directed toward inorganic growth and general corporate purposes.

By the end of March 2024, the company had 210 customers, including power utilities, power industries, and renewable energy companies. The majority of its revenue comes from international operations.

Quality Power competes with industry players such as Transformers & Rectifiers India, Hitachi Energy India, and GE T&D India.

#4 iValue Infosolutions

Next on the list is iValue Infosolutions.

iValue is an enterprise technology solutions provider focusing on securing and managing digital applications and data.

The company offers security analytics, network security, application management, cloud integration, digital transformation, and risk assessment services to its customers in India.

As per the company's draft red herring prospectus, iValue Infosolutions doesn't have any listed peers on the Indian stock exchanges.

The IPO consists of only an offer-for-sale (OFS) component comprising 18.7 m equity shares with no fresh issue component.

The promoters and the promoter group have a total holding of 49.1%, while public shareholders cover the rest, 50.8%, the official document of the company shows.

For FY24, the company's revenue stood at Rs 7.8 bn, down 2% from Rs 7.9 bn a year back. Its net profit rose 17% to Rs 705 m. In 2023, the total income of the company stood at Rs 600 m.

iValue says that it is uniquely positioned in the large and fast-growing technology solutions and associated services market in India and other neighbouring economies.

#5 Schloss Bangalore

Last on the list is Schloss Bangalore IPO.

The Leela luxury hotel chain's parent Schloss Bangalore's IPO received clearance from the market regulator on 30 December 2024.

Schloss Bangalore is a luxury hospitality company that owns and operates hotels and resorts under the Leela brand. The company currently manages 3,382 keys across 12 operational hotels.

These include five owned hotels, six hotels managed through long-term hotel management agreements, and one franchise-operated hotel.

The company's proposed IPO is a combination of a fresh issue of equity shares worth Rs 30 bn and an offer for sale (OFS) of stocks valued Rs 20 bn by promoter Project Ballet Bangalore Holdings, according to the draft red herring prospectus (DRHP).

The funds from the fresh issue will be used to repay loans and for general corporate purposes.

As of March 2024, Schloss Bangalore's total borrowings stood at Rs 40.5 bn. The company is considering a pre-IPO placement to raise Rs 6 bn, which would reduce the fresh issue size if executed.

Conclusion

Investing in IPOs can offer significant opportunities, but it also carries inherent risks. One of the main attractions of IPOs is the potential for early access to high-growth companies, which could evolve into market leaders over time.

However, IPOs are often priced at premium valuations, which raises concerns about potential overvaluation. It is essential for investors to carefully evaluate whether the company's fundamentals justify the IPO price.

Moreover, IPO stocks can be volatile, particularly in the early days or months following the listing, which may be a concern for investors seeking stability.

For those considering long-term investments, it is crucial to assess the company's growth prospects, management quality, corporate governance, and competitive position in the market.

While many analysts predict a strong IPO market in 2025, broader market conditions will play a significant role in determining IPO performance, especially in economically challenging environments.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

For more information on IPOs, check out the list of upcoming IPOs.

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