Zepto postpones IPO and plans to raise 100 billion rupees in pre-IPO round at a $4.5 billion valuation

A surge in Initial Public Offerings (IPOs) from over a dozen firms is expected next month, with Zepto, Truhome Finance, and the logistics platform Shiprocket preparing to enter the stock market. These new listings are projected by brokers to collectively raise over 25,000 crore rupees.

Reasons for Market Activity Growth

According to Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, companies that previously held back are now moving forward with their IPO plans amid market stabilization and improved investor sentiment.

Details of Major Listings

Among the largest offerings, Zepto intends to raise up to 8,010 crore rupees through a fresh issue, as well as sell up to 11.34 crore shares via an OFS mechanism. Financial company Truhome has offered an IPO worth 3,000 crore rupees, which will consist of a fresh issue of up to 1,500 crore rupees and OFS in equal amounts.

Furthermore, Elevate Campuses plans to raise 2,550 crore rupees solely through a fresh issue, while Shiprocket has applied for an IPO valued at 2,342.35 crore rupees, including a fresh issue of up to 1,100 crore rupees and an OFS of 1,242.35 crore rupees.

Other Market Participants

Other companies preparing to go public include Innovatiview India (up to 2,000 crore rupees, entirely through OFS) and Milky Mist Dairy Food (1,553 crore rupees). Also scheduled for initial offerings are Dhoot Transmission, ARCIL (Asset Reconstruction Company India Ltd), Ardee Industries, Gaja Alternative Asset Management, Rays of Belief, Hy-Tech Engineers, Shankesh Jewellers, and Learnfluence Education.

Market Prospects and Forecasts

This influx of new offerings occurs against a backdrop of sustained activity in the primary market, reflecting improved investor sentiment and high demand for new listings. Market participants anticipate that IPO activity will remain high as companies seek to capitalize on favorable conditions for fundraising.

In the current year, 36 companies have already launched their IPOs, including nine that debuted in the primary market this month. Moreover, Manipal Health Enterprises and Juniper Green Energy have scheduled their public offerings for July 29 and July 30, respectively, and MV Electrosystems is also set to launch its IPO next week.

Shah noted that the long-term prospects for the Indian IPO market remain strong despite periodic volatility. He emphasized that the primary market has undergone a structural transformation where equities are becoming an increasingly preferred source of capital for growth. Although tactical pauses due to market fluctuations are inevitable, the fundamental potential remains very high. He forecasts that India could raise around $20 billion through IPOs in the current calendar year.

He added that well-valued IPOs are likely to continue delivering high returns, whereas aggressively priced offerings may show limited growth as investors become more selective rather than simply blindly optimistic.