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News18
20-07-2025
- Business
- News18
IPO fundraising up 45% to Rs 45,350 cr in Jan-Jun despite global trade headwinds
New Delhi, Jul 20 (PTI) Fundraising through initial public offerings (IPOs) rose to Rs 45,350 crore in the first half of 2025, marking a 45 per cent increase from a year ago, despite global trade headwinds, geopolitical conflicts, and macroeconomic concerns. However, the number of IPOs declined to 24 during the period under review from 36 in the January-June period of 2024, indicating a rise in the average size of public issues. Going forward, the IPO market is expected to remain cautiously optimistic in the second half of 2025, supported by robust inflows of domestic investment, positive investor sentiment, and strong growth visibility, experts said. According to data shared by merchant bankers, 24 companies mobilised Rs 45,351 crore in the January-June period of 2025, compared to Rs 31,281 crore raised by 36 firms during the same period last year. 'The first half of the year saw market sentiment tempered by ongoing global trade tensions, geopolitical uncertainties, and macroeconomic challenges. Despite these concerns, companies successfully raised over Rs 45,000 crore via IPOs during this period," said Neha Agarwal, Managing Director and Head� Equity Capital Markets, JM Financial Institutional Securities. Adding to the momentum, the first half of 2025 also witnessed a sharp rise in draft IPO filings with the Securities and Exchange Board of India (Sebi). A total of 118 companies submitted preliminary papers, up from 52 in the corresponding period of 2024. JM Financial led the IPO league table, topping both volume and value charts with 10 issuances collectively raising Rs 26,838 crore in Q1FY26 alone, according to data from Prime Database. During the January-June 2025 period, 24 mainboard IPOs were launched, with 67 per cent of them listing at a premium. The overall performance of IPOs remained strong, delivering an average return of around 25 per cent to investors. Among the major IPOs launched during this period were HDB Financial Services (Rs 12,500 crore), Hexaware Technologies (Rs 8,750 crore), Schloss Bangalore (Rs 3,500 crore), and Ather Energy (Rs 2,981 crore). Most of these IPOs consisted of a mix of fresh equity issuance and offer for sale by existing shareholders. The proceeds were primarily used to fund business expansion plans, repay debt, and meet working capital requirements. A majority of the companies accessing the IPO route belonged to industrial sectors such as manufacturing and infrastructure, reflecting continued investor interest in core economy-driven businesses. Further, in July, at least four IPOs have been launched and at least five are in the pipeline, indicating sustained market activity. Looking ahead to the second half of 2025, the outlook remains cautiously optimistic, Ratiraj Tibrewal, CEO of Choice Capital Advisors, said. He noted that economic conditions are expected to improve in H2 compared to H1, due to easing global and domestic headwinds such as inflation, interest rates, geopolitical tensions, and currency volatility. Vinod Nair, Head of Research at Geojit Financial Services, added that this improvement could bode well for the stock market. However, he cautioned that premium valuations and a potential lack of foreign institutional and retail investor inflows could weigh on a year-on-year basis, considering the high base of Rs 1.3 lakh crore in H2CY24. He further noted that earnings upgrades in Q1FY26 and Q2FY26, along with progress on a trade deal with the US, will play a key role in shaping the IPO market trend in the latter half of the year. PTI SP ANU ANU view comments First Published: July 20, 2025, 12:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
20-07-2025
- Business
- Economic Times
IPO fundraising up 45% to Rs 45,350 crore despite global trade headwinds
Fundraising through initial public offerings (IPOs) rose to Rs 45,350 crore in the first half of 2025, marking a 45 per cent increase from a year ago, despite global trade headwinds, geopolitical conflicts, and macroeconomic concerns. However, the number of IPOs declined to 24 during the period under review from 36 in the January-June period of 2024, indicating a rise in the average size of public issues. Going forward, the IPO market is expected to remain cautiously optimistic in the second half of 2025, supported by robust inflows of domestic investment, positive investor sentiment, and strong growth visibility, experts said. According to data shared by merchant bankers, 24 companies mobilised Rs 45,351 crore in the January-June period of 2025, compared to Rs 31,281 crore raised by 36 firms during the same period last year. "The first half of the year saw market sentiment tempered by ongoing global trade tensions, geopolitical uncertainties, and macroeconomic challenges. Despite these concerns, companies successfully raised over Rs 45,000 crore via IPOs during this period," said Neha Agarwal, Managing Director and Head Equity Capital Markets, JM Financial Institutional Securities. Adding to the momentum, the first half of 2025 also witnessed a sharp rise in draft IPO filings with the Securities and Exchange Board of India (Sebi). A total of 118 companies submitted preliminary papers, up from 52 in the corresponding period of 2024. JM Financial led the IPO league table, topping both volume and value charts with 10 issuances collectively raising Rs 26,838 crore in Q1FY26 alone, according to data from Prime Database. During the January-June 2025 period, 24 mainboard IPOs were launched, with 67 per cent of them listing at a premium. The overall performance of IPOs remained strong, delivering an average return of around 25 per cent to investors. Among the major IPOs launched during this period were HDB Financial Services (Rs 12,500 crore), Hexaware Technologies (Rs 8,750 crore), Schloss Bangalore (Rs 3,500 crore), and Ather Energy (Rs 2,981 crore). Most of these IPOs consisted of a mix of fresh equity issuance and offer for sale by existing shareholders. The proceeds were primarily used to fund business expansion plans, repay debt, and meet working capital requirements. A majority of the companies accessing the IPO route belonged to industrial sectors such as manufacturing and infrastructure, reflecting continued investor interest in core economy-driven businesses. Further, in July, at least four IPOs have been launched and at least five are in the pipeline, indicating sustained market activity. Looking ahead to the second half of 2025, the outlook remains cautiously optimistic, Ratiraj Tibrewal, CEO of Choice Capital Advisors, said. He noted that economic conditions are expected to improve in H2 compared to H1, due to easing global and domestic headwinds such as inflation, interest rates, geopolitical tensions, and currency volatility. Vinod Nair, Head of Research at Geojit Financial Services, added that this improvement could bode well for the stock market. However, he cautioned that premium valuations and a potential lack of foreign institutional and retail investor inflows could weigh on a year-on-year basis, considering the high base of Rs 1.3 lakh crore in H2CY24. He further noted that earnings upgrades in Q1FY26 and Q2FY26, along with progress on a trade deal with the US, will play a key role in shaping the IPO market trend in the latter half of the year. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. What's keeping real retail investors out of the Nvidia rally If data is the new oil, are data centres the smokestacks of the digital age? The hybrid vs. EV rivalry: Why Maruti and Mahindra pull in different directions. What's best? Instagram and YouTube make billions off creators. Should they pay up for their mental health? Trent trips on the ramp. Is it still worth the splurge or time to change brands? Best way to deal with volatility, just ' Hold' for wealth creation: 7 large-cap stocks with an upside potential of up to 41% Stock picks of the week: 5 stocks with consistent score improvement with an upside potential of 16 to 38% in 1 year Headwinds, yes, but long-term story intact. 7 stocks from the engineering sector with upside potential from 21 to 42%
Economic Times
10-07-2025
- Business
- Economic Times
Capex, cost cuts spark turnaround hopes for Kirloskar Ferrous
Shares of Kirloskar Ferrous Industries have rebounded 29% in the last three months thereby reducing the one-year fall to 22%. Analysts are optimistic about the company's capacity expansion and cost‐saving initiatives. It has planned a capital expenditure of Rs 500–600 crore for the current financial year, directed largely towards expanding the steel plant and enhancing renewable energy capacity. ADVERTISEMENT The company has sold nearly 600 tonnes of castings from its recently commissioned Oliver foundry in Punjab and expects to increase production to 1,500 tons per month in the coming months. Castings remain the company's dominant segment, contributing 43 percent to total revenue as of March 2025 followed by the tube business at 23 percent and steel products at 18 percent. Management expects that enhancing backward integration, including ramping up captive iron‐ore mining, will further bolster margins and shield the company from raw‐material volatility. The company was able to expand earnings from the pig‐iron segment despite a downturn in benchmark prices due to lower coking‐coal costs and in‐house iron‐ore supply from Kirloskar Bharat mines. 'We expect to increase our own iron ore consumption in this year and thereby get more benefits in terms of reduced iron ore cost,' said RV Gumaste, MD, Kirloskar Ferrous during the earnings call after declaring March quarter numbers on May 09. For FY26, the company expects to consume at least 250,000 tonnes of its own ore compared with 57,000 tonnes in the previous year, unlocking substantial savings on one of its biggest cost a bid to enhance green energy initiatives, it plans to double the solar power capacity to 55-60 megawatts (MW) in FY26. The company aims to add 12.6 MW of wind power and 35 MW of solar capacity in the current financial year, with another 50-60 MW of solar planned for the next financial headwinds in raw‐steel and pig‐iron prices, the company is confident of sustaining 14-16 percent operating margin before depreciation and amortization (EBITDA margin) in both its casting and tube divisions. 'We continue to work on two fronts, cutting manufacturing costs and shifting mix toward higher‐value products,' Gumaste explained. ADVERTISEMENT 'Kirloskar Ferrous continues to remain well paced on margin expansion path amidst new projects underway to reduce raw material cost, coupled with margin accretive product profile,' JM Financial Institutional Securities said in a report. The broking firm has maintained a 'Buy' call on the stock. However, it has reduced the price target by 17% to Rs 610 and lowered earnings forecast by 22% for FY26, citing lower volume growth. The stock was traded at Rs582 on Thursday on the BSE. (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
01-07-2025
- Business
- Economic Times
Rs 72 lakh crore stock market boom flashes valuation warning. Where's the smart money going?
Live Events Which sectors to invest in? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's equity benchmark Sensex has rocketed an extraordinary 12,000 points in less than three months in a Rs 72 lakh crore rally, leaving cash-sitting investors nursing deep regrets as domestic and foreign money floods into stocks ahead of critical trigger points including Trump's July 9 tariff deadline and the looming Q1 earnings blistering 17% surge from April 7's low of 71,425 has propelled markets to near all-time high once again, with the Sensex and Nifty rallying for four consecutive months as domestic institutional investors splurged Rs 3.5 lakh crore while foreign institutional investors turned net buyers across all three months. During the period, the combined market capitalization of all BSE-listed stocks has soared by Rs 72 lakh crore to Rs 461 lakh crore."We believe this is basically running on liquidity," warns Venkatesh Balasubramaniam of JM Financial Institutional Securities. "Domestic flows have been very strong with monthly SIP numbers over Rs 26,000 crore per month. Since March onwards, FII inflows have turned positive. Definitely this is running on flows." Besides, mutual funds have been sitting on large amounts of cash with May month's pile at Rs 2.17 lakh relentless money flow has created a dangerous disconnect between valuations and fundamentals, with analysts cautioning that all market segments, large caps, mid caps, and small caps, are now trading at one standard deviation or more above their mean the euphoria, seasoned market watchers are sounding alarm bells about stretched valuations and the need for moderated expectations ahead of the tariff deadline and earnings season."The first and foremost recommendation to investors is to moderate return expectations," cautions Nilesh Shah, MD of Kotak AMC. "Last five years returns are unlikely to be repeated in the next two to three years. Markets are fairly valued or a little bit over fairly valued, and re-rating is unlikely, which means returns will be linked with earnings growth likely in high single digit, low double digit."Shah advocates diversification beyond equities: "Outside of equity, there are asset classes—REITs, InvITs, debt mutual funds, performing credit, AIFs, precious metals, index or ETFs. Please maintain your asset allocation across debt, equity, commodity, and real estate. Do not put everything in equity."History, however, appears to favor continued gains entering July, with the month delivering positive returns in nine of the last 10 years and an average gain of 3.6%. Recent July performances include 2024's 3.92% return and 2023's 2.94% gain, reinforcing the month's bullish Reserve Bank of India's aggressive monetary support through recent rate cuts and a surprise CRR reduction has turbocharged domestic liquidity, with financials emerging as the top beneficiary sector."Lower interest rates are helping banks and NBFCs. Credit growth remains strong, and asset quality is stable," notes Krishna Appala of Capitalmind PMS, highlighting financials as a constructive outlook Jonagadla of Quantace Research sees particular opportunity in infrastructure financiers: "Lower policy rates and relaxed provisioning norms boost credit growth. PFC and REC leapt ~4% when the RBI's new rules landed, and PSU-bank indices hit six-month highs."While capex and financials have led the recovery, Mihir Vora of TRUST Mutual Fund notes that "in financials, we have seen capital market plays doing well but banks and NBFCs have lagged" and could now start stocks, which have lagged significantly year-to-date, are attracting contrarian interest as valuations turn attractive and fundamentals show signs of improvement."One can keep an eye on the IT sector which has not performed particularly well year-to-date," advises Atul Bhole of Kotak Mutual Fund. "After every major technology adoption, Indian vendors have actually experienced more volume of work. Large-caps are trading at relatively reasonable valuations and provide dividend yield support of 2-2.5%."The sector's appeal is enhanced by expectations of a normal business cycle returning, with Bhole noting that "assuming normal business cycle returning, IT spends can come back" as concerns over US economy and AI-led disruption may be chemical sector is attracting contrarian interest after enduring a brutal two-year downcycle, with early signs of price stabilization offering hope for revival."The persistent price fall of 2 years seems to be over and prices are stabilizing now. There are initial hopes for revival by companies," notes Bhole. "Companies are continuously investing behind products, client engagements and facilities. It may need some more patience, but provides a good opportunity to accumulate select chemical stocks."However, export-oriented pharma and chemicals could face headwinds amid U.S. tariff uncertainty, requiring selective stock picking within the sectors that have lagged the broader rally are now showing signs of life as domestic demand improves and policy support continues."Consumer discretionary segments like automobiles (two-wheelers as well as four-wheelers), white goods have lagged and can now start performing," highlights Vora, noting improving rural demand and steady urban sees opportunity in consumption broadly: "Rural demand is improving, and urban consumption is steady. FMCG, two-wheelers, and discretionary segments are showing healthy trends."In manufacturing and industrials, government capital expenditure remains high with the PLI scheme supporting domestic production. "Infrastructure and capital goods companies are seeing strong demand," notes Appala, with Jonagadla adding that "order books are overflowing—L&T reported a record ₹1 trillion intake in Q4 FY25."While defence remains a compelling long-term theme, recent sharp rallies have made valuations prohibitive for fresh investments."We continue to like defence as a long-term theme. However, after a sharp rally and expensive valuations, we are cautious on adding fresh exposure at current levels," warns markets navigate Trump's July 9 tariff deadline and Q1 earnings season, the consensus points toward continued upside potential despite elevated valuations."While valuations are elevated in parts, the broader context remains supportive," argues Vora. "Earnings are coming through, liquidity is abundant, and policy remains growth-focused. The uptrend looks sustainable, though we do expect pockets of volatility."The key for investors lies in selective positioning across financials, underperforming IT stocks, recovering chemicals, and domestic consumption plays while maintaining diversified portfolios as the liquidity-driven rally seeks fundamental validation.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
01-07-2025
- Business
- Time of India
Rs 72 lakh crore stock market boom flashes valuation warning. Where's the smart money going?
India's equity benchmark Sensex has rocketed an extraordinary 12,000 points in less than three months in a Rs 72 lakh crore rally, leaving cash-sitting investors nursing deep regrets as domestic and foreign money floods into stocks ahead of critical trigger points including Trump's July 9 tariff deadline and the looming Q1 earnings season. The blistering 17% surge from April 7's low of 71,425 has propelled markets to near all-time high once again, with the Sensex and Nifty rallying for four consecutive months as domestic institutional investors splurged Rs 3.5 lakh crore while foreign institutional investors turned net buyers across all three months. During the period, the combined market capitalization of all BSE-listed stocks has soared by Rs 72 lakh crore to Rs 461 lakh crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo "We believe this is basically running on liquidity," warns Venkatesh Balasubramaniam of JM Financial Institutional Securities. "Domestic flows have been very strong with monthly SIP numbers over Rs 26,000 crore per month. Since March onwards, FII inflows have turned positive. Definitely this is running on flows." Besides, mutual funds have been sitting on large amounts of cash with May month's pile at Rs 2.17 lakh crore. The relentless money flow has created a dangerous disconnect between valuations and fundamentals, with analysts cautioning that all market segments, large caps, mid caps, and small caps, are now trading at one standard deviation or more above their mean valuations. Despite the euphoria, seasoned market watchers are sounding alarm bells about stretched valuations and the need for moderated expectations ahead of the tariff deadline and earnings season. Live Events "The first and foremost recommendation to investors is to moderate return expectations," cautions Nilesh Shah, MD of Kotak AMC. "Last five years returns are unlikely to be repeated in the next two to three years. Markets are fairly valued or a little bit over fairly valued, and re-rating is unlikely, which means returns will be linked with earnings growth likely in high single digit, low double digit." Shah advocates diversification beyond equities: "Outside of equity, there are asset classes—REITs, InvITs, debt mutual funds, performing credit, AIFs, precious metals, index or ETFs. Please maintain your asset allocation across debt, equity, commodity, and real estate. Do not put everything in equity." History, however, appears to favor continued gains entering July, with the month delivering positive returns in nine of the last 10 years and an average gain of 3.6%. Recent July performances include 2024's 3.92% return and 2023's 2.94% gain, reinforcing the month's bullish bias. Also Read | 6,000-point Sensex rally overshadows market's real story: Smallcaps are staging a revolt Which sectors to invest in? The Reserve Bank of India's aggressive monetary support through recent rate cuts and a surprise CRR reduction has turbocharged domestic liquidity, with financials emerging as the top beneficiary sector. "Lower interest rates are helping banks and NBFCs. Credit growth remains strong, and asset quality is stable," notes Krishna Appala of Capitalmind PMS, highlighting financials as a constructive outlook area. Karthick Jonagadla of Quantace Research sees particular opportunity in infrastructure financiers: "Lower policy rates and relaxed provisioning norms boost credit growth. PFC and REC leapt ~4% when the RBI's new rules landed, and PSU-bank indices hit six-month highs." While capex and financials have led the recovery, Mihir Vora of TRUST Mutual Fund notes that "in financials, we have seen capital market plays doing well but banks and NBFCs have lagged" and could now start performing. Technology stocks, which have lagged significantly year-to-date, are attracting contrarian interest as valuations turn attractive and fundamentals show signs of improvement. "One can keep an eye on the IT sector which has not performed particularly well year-to-date," advises Atul Bhole of Kotak Mutual Fund. "After every major technology adoption, Indian vendors have actually experienced more volume of work. Large-caps are trading at relatively reasonable valuations and provide dividend yield support of 2-2.5%." Also Read | July's magic touch: Nifty has failed only once in last 10 years. Will history repeat? The sector's appeal is enhanced by expectations of a normal business cycle returning, with Bhole noting that "assuming normal business cycle returning, IT spends can come back" as concerns over US economy and AI-led disruption may be overdone. The chemical sector is attracting contrarian interest after enduring a brutal two-year downcycle, with early signs of price stabilization offering hope for revival. "The persistent price fall of 2 years seems to be over and prices are stabilizing now. There are initial hopes for revival by companies," notes Bhole. "Companies are continuously investing behind products, client engagements and facilities. It may need some more patience, but provides a good opportunity to accumulate select chemical stocks." However, export-oriented pharma and chemicals could face headwinds amid U.S. tariff uncertainty, requiring selective stock picking within the sector. Several sectors that have lagged the broader rally are now showing signs of life as domestic demand improves and policy support continues. "Consumer discretionary segments like automobiles (two-wheelers as well as four-wheelers), white goods have lagged and can now start performing," highlights Vora, noting improving rural demand and steady urban consumption. Appala sees opportunity in consumption broadly: "Rural demand is improving, and urban consumption is steady. FMCG, two-wheelers, and discretionary segments are showing healthy trends." In manufacturing and industrials, government capital expenditure remains high with the PLI scheme supporting domestic production. "Infrastructure and capital goods companies are seeing strong demand," notes Appala, with Jonagadla adding that "order books are overflowing—L&T reported a record ₹1 trillion intake in Q4 FY25." While defence remains a compelling long-term theme, recent sharp rallies have made valuations prohibitive for fresh investments. "We continue to like defence as a long-term theme. However, after a sharp rally and expensive valuations, we are cautious on adding fresh exposure at current levels," warns Appala. As markets navigate Trump's July 9 tariff deadline and Q1 earnings season, the consensus points toward continued upside potential despite elevated valuations. "While valuations are elevated in parts, the broader context remains supportive," argues Vora. "Earnings are coming through, liquidity is abundant, and policy remains growth-focused. The uptrend looks sustainable, though we do expect pockets of volatility." The key for investors lies in selective positioning across financials, underperforming IT stocks, recovering chemicals, and domestic consumption plays while maintaining diversified portfolios as the liquidity-driven rally seeks fundamental validation. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
