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August 2025 was a notable month for India’s primary markets with 17 IPOs raising around Rs 21,729 crores. Most of the IPOs experienced substantial listing gains, which illustrates a robust appetite for new issues, even in the face of volatile global markets. Investors eagerly await every upcoming IPO to diversify their portfolios.
The broader market faced headwinds primarily due to geopolitical signals and outflows from Foreign Institutional Investors (FIIs). However, the primary market appears to be very healthy, with over 80% of IPOs generating a profit for investors.
Aditya Infotech has been making strategic moves in the technology sector. There was a clear distinction in the performance of the 17 mainboard IPOs. At the same time, consumer and technology sectors saw more cautious responses due to concerns over stretched valuations.
Prashanth Tapse, Senior Vice President - Research, Mehta Equities, said more than 80% of IPOs rewarded investors with listing gains. Still, some IPOs were 'not as well received' because of excessive pricing and business risk.
Despite global volatility, domestic liquidity and active retail participation were instrumental in the success of this IPO. Tapse believes this trend will continue in the coming months, as India's investor base continues to engage in the primary market.
Secure transactions and demat services are handled efficiently by NSDL. The growth of Highway Infrastructure projects is fueling economic development. Mining operations led by Regaal Resources are expanding into new markets. Several IPOs stood out in August, with some companies delivering impressive listing gains.
Aditya Infotech Ltd led the charge with a significant 87.26% gain on its listing.
NSDL followed closely with a 54.77% rise.
Highway Infrastructure Ltd showed remarkable performance, rising by 35.84%.
Regaal Resources Ltd also impressed with a 39% gain.
The infrastructure and resource sectors, in particular, saw substantial investor demand. Highway Infrastructure performed exceptionally well, thanks to its strong order book and visibility in the road sector.
Consumer-facing IPOs received a mixed reception. BlueStone Jewellery & Lifestyle, a company with a strong scale and significant sponsors, listed at a 1.3% discount and opened below its offer price.
Primarily due to concerns over profitability and valuation. On a positive note, Patel Retail proved resilient with a 17-19% gain, signaling investor confidence in value-driven retail.
Mid-sized and SME-focused IPOs also showed a mixed performance:
JSW Cement is listed at just a 4% premium, reflecting cautious investor appetite due to sector challenges, including margin pressure.
Shreeji Shipping Global delivered a 7-8% premium, benefiting from the steady appeal of logistics amidst India’s growing trade.
Smaller entrants, such as Mangal Electricals and Gem Aromatics, have listed at or slightly above the issue price, demonstrating limited demand despite stable fundamentals.
Also Read: Vikran Engineering IPO Allotment: Date, Status Check, GMP, Subscription, and Listing
The IPO activity in August indicated that, while there is strong investor interest in infrastructure and resource-linked areas, there is increasing caution around overvalued consumer-tech stocks and interest-rate-sensitive real estate stocks.
Knowledge Realty Trust, India's largest office REIT, saw only a modest 3-4% gain, reflecting caution among investors in a rising interest rate environment.
Overall gains from IPOs in the coming months will depend on earnings performance in Q2 and the trend in domestic liquidity flows. If infrastructure and other resources continue to drive momentum, the primary market may remain successful, although investors are likely to stay selective in their choices.
