As the year winds down, the Indian primary market is heating up with a lineup of exciting upcoming IPOs in February 2025. Investors and market enthusiasts alike are eagerly anticipating these entries, which promise to bring fresh opportunities and innovative business models to the forefront.
In 2024, the Indian primary market experienced notable activity, featuring 90 Mainboard IPOs and 248 SME IPOs. Of these, 71 Mainboard IPOs delivered positive returns, while 222 SME IPOs also showed strong performance. Despite this success, some challenges emerged, with 19 Mainboard IPOs and 25 SME IPOs yielding negative returns.
Furthermore, one SME IPO, Trafiksol ITS, was withdrawn during the year. The average listing return for Mainboard IPOs was an impressive 30.12%, whereas SME IPOs outperformed with an exceptional average return of 60.26%. These figures underscore the market’s potential for substantial gains and opportunities. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central. Let’s dive into the upcoming IPOs in February 2025.
Ather Energy – Most Awaited in Upcoming IPOs in February 2025
Ather Energy, a leading player in India’s fast-growing electric vehicle (EV) sector, is poised to enter the public market with an IPO that will consist of a fresh issue of INR 3,100 crore and an offer for sale (OFS) of 2.20 crore equity shares. The company, known for its high-performance electric scooters such as the Ather 450X, has seen a surge in valuation, reaching around USD 2.5 billion from USD 1.3 billion within months, following a successful funding round led by the National Investment and Infrastructure Fund (NIIF).
With India’s EV market projected to grow at a compound annual growth rate (CAGR) of 40-44% over the next five years, Ather Energy plans to allocate IPO proceeds toward manufacturing expansion and research & development (R&D). The company’s market entry follows the recent success of Ola Electric’s IPO, further fueling investor confidence in the EV space.
Investors will also get an opportunity to double their allotment chances by taking advantage of shareholder reservations.
Avanse Financial Services: One of the Biggest IPO in February 2025
Avanse Financial Services is expected to launch its IPO in February 2025. Avanse Financial Services, India’s second-largest non-banking financial company (NBFC) specializing in education financing, is set to raise INR 3,500 crore through its IPO. The offering includes a fresh issue worth INR 1,000 crore to support loan book expansion and technological advancements.
The company has exhibited stellar financial performance, with revenue growing 75% year-on-year to INR 1,728.81 crore in FY24. Profit after tax (PAT) more than doubled to INR 342.4 crore in the same period. Backed by marquee investors such as Warburg Pincus and Kedaara Capital, Avanse Financial stands out for its data-driven underwriting model and low default rates. With India witnessing a rise in education loans, especially for overseas studies, Avanse’s IPO is expected to draw strong investor interest.
ArisInfra Solutions: Capitalizing on Infrastructure Growth
ArisInfra Solutions, a key player in the construction materials industry, is gearing up for an INR 600 crore IPO. This offering will be entirely a fresh issue, with no offer-for-sale component, reinforcing the company’s commitment to expansion rather than capital exits by existing shareholders.
The IPO funds will be utilized to repay debt, enhance working capital, and invest in its subsidiary, Buildmex-Infra. ArisInfra reported a revenue of INR 702.36 crore for FY24 and has secured INR 80 crore in pre-IPO funding, signaling strong investor confidence. With a robust client base including Tata Group and Larsen & Toubro, and its technology-driven procurement solutions, ArisInfra is well-positioned to capitalize on India’s infrastructure boom.
Vikran Engineering: Forthcoming IPO in February 2025
Vikran Engineering, an Engineering, Procurement, and Construction (EPC) firm, is set to raise INR 1,000 crore via an IPO, comprising a fresh issue of INR 900 crore and an offer for sale worth INR 100 crore by the promoter.
The company has demonstrated impressive growth, with revenue rising from INR 479.57 crore in FY22 to approximately INR 791.44 crore in FY24, reflecting a CAGR of about 33% over three years. Vikran Engineering boasts a return on equity (ROE) of 35% and a return on capital employed (ROCE) of 31%, indicating robust financial health. The company operates across 22 Indian states, serving critical sectors such as power, water, and rail infrastructure. Backed by investors such as the India Inflection Opportunity Fund and Ashish Kacholia, Vikran Engineering’s IPO presents an attractive prospect for those seeking exposure to the infrastructure segment.
Belstar Microfinance: Empowering the Underserved
Belstar Microfinance, backed by Muthoot Finance, plans to raise INR 1,300 crore through its IPO, comprising a fresh issue worth INR 1,000 crore and an offer for sale of INR 300 crore.
The company has experienced strong growth, with total operating revenue surging from INR 727 crore in March 2022 to INR 1,283 crore by December 2023. Meanwhile, net profit has soared from INR 45 crore to INR 235 crore in the same period. Operating predominantly through a self-help group (SHG) model, Belstar empowers women in rural and semi-urban areas while maintaining a strong financial position. With Muthoot Finance’s backing and a robust track record, the IPO offers an appealing opportunity for investors seeking exposure to the microfinance sector. Among these upcoming IPOs in February 2025, Belstar Microfinance is the only microfinance sector.
Investors will also get an opportunity to double their allotment chances by taking advantage of shareholder reservations.
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Chamunda Electrical IPO: SME IPO in February 2025
Chamunda Electrical’s IPO is scheduled to open on 4 February 2025, making it the first SME IPO in February 2025. The company operates in the electrical infrastructure and renewable energy sectors, both of which are poised for significant expansion. With a price band set at INR 47 – 50 per share and a total issue size of INR 14.60 crore, this IPO is a completely fresh issue.
Chamunda specializes in the operation and maintenance of substations up to 66 kV and testing of substations up to 220 kV. The company is also venturing into solar power generation, aligning with India’s renewable energy push. Established in 2013, Chamunda Electrical has built a strong reputation, with over 600 professionals managing critical projects. Given India’s growing power infrastructure needs, this IPO could attract substantial investor attention.
Ken Enterprises IPO
Ken Enterprises IPO is also preparing for its IPO, targeting an issue size of approximately INR 83.65 crore which consists of a fresh issue of 61.99 lakh shares and an Offer for Sale of INR 25.38 crore. The IPO is set to open for subscription from 5 – 7 February 2025 with the listing expected on 12 February 2025.
Established in 1998, Ken Enterprises operates in the textiles manufacturing sector, leveraging decades of expertise. The company manufactures fabrics for various purposes, including apparel, industrial, technical, shirtings, and home furnishings. The company is into manufacturing of greige fabrics. They utilize third-party manufacturing services for the production of greige fabric on a job-work basis, located in and around Ichalkaranji, Maharashtra, a key fabric weaving hub, to enhance their manufacturing capacity.
Conclusion: A Month of Possibilities
As February 2025 approaches, these upcoming IPOs in February 2025 represent not just investment opportunities but also a chance to be part of innovative ventures shaping the future of various industries in India. Whether you’re looking to invest in electric vehicles and education finance to infrastructure and microfinance, these upcoming IPOs cater to diverse sectors, promising investors a range of lucrative opportunities. For the latest IPO Approval from SEBI stay tuned to IPO Central.
