The Indian stock market continues to witness a dynamic IPO landscape, though this week does not feature any new mainboard or SME initial public offerings (IPOs). However, several key listings and upcoming IPOs are generating significant interest on Dalal Street. Here are four major IPOs to watch in the coming weeks:
LG Electronics India IPO: A Game-Changer in Consumer Electronics
Overview
LG Electronics’ Indian subsidiary has filed for an IPO, aiming to raise approximately ₹15,237 crore through an offer for sale of 101.8 million shares.
Industry Outlook
The consumer electronics industry in India is experiencing rapid growth, driven by increasing disposable income, urbanization, and digital adoption. LG Electronics is a well-established brand with a loyal customer base, making this IPO highly attractive to investors.
Use of Funds
Since this IPO involves an offer for sale, no fresh shares will be issued. The proceeds will primarily benefit existing shareholders. However, the listing will enhance LG’s market valuation and visibility in India.
Key Challenges
LG Electronics faces intense competition from domestic and global brands like Samsung, Sony, and Xiaomi. Additionally, supply chain disruptions and currency fluctuations could impact profitability.
Travel Food Services (TFS) IPO: Capitalizing on India’s Travel Boom
Overview
SSP Group, the parent company of Upper Crust, is planning to list its co-owned venture, Travel Food Services (TFS), in India. The IPO is expected by mid-2025.
Industry Outlook
The travel food service industry is thriving, driven by increased airport and railway passenger traffic. With an established presence at major transit hubs, TFS is well-positioned for growth.
Use of Funds
Funds raised from the IPO will be allocated for:
- Expansion into new airport locations
- Upgrading existing food outlets
- Strengthening supply chain efficiency
Key Challenges
The industry is highly dependent on travel trends. Any decline in passenger numbers due to economic downturns or pandemics could impact revenue. Rising costs of raw materials and labor are also concerns.
OfBusiness IPO: A Billion-Dollar B2B Opportunity
Overview
OfBusiness, a SoftBank-backed B2B e-commerce platform, is preparing for an IPO expected to raise up to $1 billion. The listing is anticipated in late 2025.
Industry Outlook
India’s B2B e-commerce sector is booming as businesses shift toward digital procurement. OfBusiness has carved a niche by offering industrial goods and financing solutions, making it a strong player in this space.
Use of Funds
The company plans to utilize IPO proceeds for:
- Expanding its industrial goods marketplace
- Strengthening technology infrastructure
- Enhancing lending capabilities for SMEs
Key Challenges
Competition from platforms like Udaan and Moglix is a key concern. Additionally, changes in lending regulations could impact OfBusiness’ financial services division.
JSW Cement IPO: Strengthening India’s Infrastructure Sector
Overview
JSW Cement has received regulatory approval for its IPO, aiming to raise ₹4,000 crore. The company is banking on India’s infrastructure boom to drive growth.
Industry Outlook
With the Indian government’s focus on infrastructure development, the cement industry is projected to grow at a CAGR of over 6%. JSW Cement is poised to benefit from this trend.
Use of Funds
Proceeds from the IPO will be directed toward:
- Expanding manufacturing capacity
- Reducing debt
- Investing in sustainable cement production
Key Challenges
The cement industry is highly cyclical, with profitability linked to raw material costs and economic conditions. Fluctuating transportation costs also pose a risk.
Other Upcoming IPOs to Watch
Apart from these major IPOs, Tata Capital has announced plans for a significant public offering. The company will issue 230 million new shares, marking the first Tata Group IPO since Tata Technologies’ successful listing in November 2023. Given Tata Capital’s strong presence in the financial sector, investor interest is expected to be high.
Conclusion
While this week sees no new mainboard or SME IPOs, these upcoming listings are set to redefine the investment landscape in 2025. Investors should closely track these IPOs, as they offer potential growth opportunities in sectors like consumer electronics, infrastructure, and financial services.
Keep an eye out for more insights on the latest IPO trends and market movements on Dalal Street!
