What is an IPO?
An Initial Public Offering, or IPO, is the very first undertaking a privately held company aims to offer shares to the public. Thus, the company lists its stock on a public stock exchange (such as NSE or BSE in India), and investors acquire and trade its shares.
Put simply, an IPO is how a company changes its status from privately owned, usually by its founders, their family, and early investors, to publicly traded with shares owned practically across the market.
Why Are IPOs Initiated by Companies?
Companies get listed on the public stock exchange due to a large plethora of strategic and financial reasons:
1. Raise Capital for Growth
Companies raise money via IPOs in stretches of hundreds of millions for financing expansion plans, R&D expenditures, infrastructure, purchase, or reduction of debts.
2. Enhance Credibility and Visibility
The very fact of being listed gives the company a powerful brand image and market presence that can now attract new customers, business partners, and talented employees.
3. Provide Liquidity
The IPO presents an opportunity for existing investors and early-stage backers to liquidate or trade their shares in the open market.
4. Employee Incentives
Listed companies can also provide stock incentives such as employee stock option plans (ESOPs) to attract and retain talent.
Key Terms to Know
- DRHP (Draft Red Herring Prospectus): This is a preliminary document filed with SEBI, containing details of the company, its financials, and the IPO.
- Price Band: The price within which investors may bid for shares in the IPO.
- Lot Size: The least number of shares for which application may be made.
- Listing Date: The date on which stocks start trading on the exchange.
- Oversubscription: When demand for shares exceeds the number of shares on offer.
Types of IPO Investors
- Retail Investors: Individual investors applying for shares less than ₹2 lakh.
- High Net-Worth Individuals (HNIs): Individuals applying for shares above ₹2 lakh.
- Qualified Institutional Buyers (QIBs): Large financial institutions such as mutual funds, insurance companies, and foreign investors.
IPOs as an Investment Opportunity
IPOs can be rewarding and risky at the same time. Some do well in the post-listing period; others underperform. Before applying for an IPO, it is crucial to bear in mind the company’s financials, growth prospects, and sectoral trends.
If you wish, I can prepare this into a blog-ready introduction or merge it with the May 2025 IPO analysis.
May 2025 IPO Highlights
1. Prostarm Info Systems Ltd.
- Sector: Power Solutions & Energy Storage
- Issue Size: ₹168 crore
- Price Band: ₹95–₹105 per share
- Subscription Period: May 27–29
- Listing: BSE & NSE
Company Overview: Established in 2008 at Navi Mumbai, Prostarm manufactures power backup solutions comprising UPS systems, inverters, solar hybrid inverters, and lithium-ion battery packs. Project execution of solar rooftops is also another business they undertake on behalf of EPC.
Financials: Prostarm recorded revenues of ₹257.9 crore in FY24, marking an increase of 12% over the previous year. Net profit grew 18% to ₹22.8 crore. The company has served over 700 clients, including big names such as Larsen & Toubro, Tata Power, and Bajaj Finance.
IPO Objective: Utilization of issue proceeds shall be for working capital requirements, repayment of debt, strategic acquisitions, and any general corporate purposes required by the company.
2. Blue Water Logistics Ltd.
- Sector: Multimodal Transport Services
- Issue Size: ₹40.5 crore
- Price Band: ₹132–₹135 per share
- Subscription Period: May 27–29
Company Overview: A hallmark logistics provider with freight forwarding, warehousing, and transportation services under one umbrella, Blue Water Logistics aims to upgrade infrastructure and enhance service standards.
IPO Objective: Proceeds from the IPO will be utilized for the construction of logistics infrastructure, technology platform upgrades, and meeting general corporate expenses.
3. Nikita Papers Ltd.
- Sector: Paper Manufacturing
- Issue Size: ₹67.54 crore
- Price Band: ₹95–₹104 per share
- Subscription Period: May 27–29
- Listing: NSE Emerge
Company Overview: Nikita Papers is engaged in the manufacturing of Kraft paper, catering to the packaging industry. The company focuses on sustainable and eco-friendly production processes.
IPO Objective: The capital will be used for capacity expansion, modernization of existing facilities, and working capital requirements.
4. Aegis Vopak Terminals Ltd.
- Sector: Oil & Gas Storage
- Issue Size: ₹2,800 crore
- Subscription Period: May 26–28
- Listing Date: June 2
Company Overview: A joint venture between Aegis Logistics (50.1%) and Netherlands-based Royal Vopak (47.4%), Aegis Vopak Terminals is India’s largest third-party owner and operator of tank storage terminals for LPG and liquid products, with a storage capacity of approximately 1.5 million cubic meters.
Financials: In FY24, the company reported a revenue of ₹570.12 crore, up 60% from the previous year, and a net profit of ₹86.54 crore, a significant turnaround from a loss in FY23.
IPO Objective: Proceeds will be utilized for debt repayment, funding capital expenditure for the acquisition of a cryogenic LPG terminal at Mangalore, and general corporate purposes.
5. Scoda Tubes Ltd.
- Sector: Steel Tubes & Pipes
- Issue Size: ₹275 crore
- Price Band: ₹130–₹140 per share
- Subscription Period: May 28–30
Company Overview: Scoda Tubes specializes in manufacturing stainless steel tubes and pipes, catering to various industries including oil & gas, pharmaceuticals, and construction.
IPO Objective: The funds will be allocated towards expanding manufacturing capacity, enhancing product quality, and meeting working capital needs.
6. Belrise Industries Ltd.
- Sector: Automotive Components
- Issue Size: ₹2,150 crore
- Status: SEBI Approval Received
Company Overview: Belrise Industries manufactures automotive components, including metal chassis systems and suspension components, serving clients like Bajaj Auto, Honda, Hero MotoCorp, and Jaguar Land Rover. The company operates 15 manufacturing facilities across India and exports to markets such as Austria, Slovakia, the UK, Japan, and Thailand.
Financials: In FY24, the company reported a revenue of ₹7,484.2 crore, a 13.7% increase from the previous year, with a net profit of ₹310.9 crore.
IPO Objective: The primary aim is to reduce debt by ₹1,618 crore and fund general corporate purposes.
7. Borana Weaves Ltd.
- Sector: Textiles
- Issue Size: 70 lakh equity shares (Fresh Issue)
- Listing Date: May 27
- Listing Price: ₹243, a 12.5% premium over IPO price
Company Overview: Based in Surat, Borana Weaves specializes in the production of unbleached synthetic grey fabric. The company plans to establish a new manufacturing unit to expand its production capabilities.
Financials: For FY24, the company reported revenue of ₹199 crore and a net profit of ₹23.59 crore.
IPO Objective: Funds will be used to set up a new manufacturing unit, meet working capital requirements, and for general corporate purposes.
Upcoming SME IPOs
Several SMEs have announced IPOs this month:
- Astonea Labs: Price Band ₹128–₹135; Subscription May 27–29
- Neptune Petrochemicals: Price Band ₹115–₹122; Subscription May 28–30
- NR Vandana Textile: Price Band ₹42–₹45; Subscription May 28–30
Conclusion
IPOs are a key way for companies to raise capital and grow, while giving investors an opportunity to invest in promising companies at an early stage. The IPO space was abuzz in May 2025, with companies from sectors like power, logistics, paper, and auto components coming to the markets. This reflects growing investor interest and growing corporate confidence in India’s economic outlook.
With both large and SME IPOs showing momentum, May was a solid month for public listings—offering opportunities for informed investors and signaling continued strength in the capital markets.
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