VRIGHT Exchange —IPO Outlook and Investor Guide (September 2025)

Snapshot: Mainboard & SME pipeline, market analysis, and actionable insights

Date: September 10, 2025

Prepared by: VRIGHT Exchange Research & Strategy Desk
Investor Summary

September 2025 presents a robust IPO market with strong institutional participation and retail investor appetite. SEBI’s streamlined approval processes, combined with favorable market liquidity conditions, have created an active issuance environment.

The pipeline is characterized by large financial services offerings and diverse SME opportunities, though selectivity remains crucial given valuation sensitivities and execution risks.

Stats as of 10 Sep 2025)
• Mainboard Pipeline: Multiple large-scale deals led by financial services, renewable energy, and consumer platforms

• SME Activity: Sustained activity with improved average issue sizes; NSE EMERGE average IPO size at ₹37.57 crores (YTD 2025)

• Market Performance: Strong oversubscription trends with QIB and retail averages at elevated levels

• Investor Participation: Institutional anchor interest robust for quality mainboard deals; retail participation remains active across segments

Market Context Driving the IPO Window

Global Drivers

• Monetary Policy Environment: Expectations of Fed policy easing have improved EM equity flows and reduced funding costs for issuers

• Risk Appetite: Current global liquidity conditions support equity capital raising, though geopolitical and commodity price volatilities remain monitoring points

• Currency Stability: INR stability relative to USD supports foreign institutional investment flows

Domestic Drivers

• Economic Fundamentals: Strong GDP growth momentum and manufacturing sector expansion support revenue visibility for issuers

• Regulatory Support: SEBI’s targeted 3-month approval timeline has accelerated deal flow and reduced uncertainty for issuers

• Consumption Trends: Tax rationalization measures and improved household liquidity provide tailwinds for consumer-facing businesses

• Infrastructure Investment: Government capex focus and private sector participation create opportunities in infrastructure and industrial sectors

Mainboard Issuance Themes

• Financial Services Leadership: NBFCs and asset managers dominate large-ticket issuances, reflecting investor appetite for scaled financial franchise exposure

• Infrastructure & Clean Energy Focus: Reflects ongoing capex cycle and energy transition investment themes

• Consumer Platform Evolution: Technology-enabled service platforms seeking to monetize large addressable markets

• Industrial Consolidation: Manufacturing and infrastructure plays benefiting from policy support and import substitution trends
Performance Considerations

• Anchor Participation: Institutional backing increasingly crucial for pricing and post-listing performance

• Earnings Visibility: Near-term earnings clarity and business model sustainability drive aftermarket performance

• Market Timing: Large deals can impact overall market liquidity; coordination with broader portfolio strategy important

SME IPO Snapshot

Market Overview
• Platform Evolution: The BSE SME and NSE EMERGE has reached significant scale with average issue sizes expanding substantially

• Sector Diversity: Manufacturing, capital goods, agri-tech, and service sectors all represented

• Risk Profile: Higher volatility and governance considerations require enhanced due diligence

SME Sector Trends
• Manufacturing Beneficiaries: Import substitution and domestic capex cycle supporting order book visibility

• Technology Integration: SMEs with digital transformation stories gaining investor attention

• Export Orientation: Companies with diversified geographic exposure showing resilience

• Governance Premium: Well-governed companies with transparent reporting commanding valuation premiums

Demand & Supply Dynamics

Demand-Side Factors
• Retail Participation: Strong domestic investor appetite supported by improved household savings and market familiarity

• Institutional Interest: Selective but deep institutional participation for quality mainboard offerings

• HNI & Family Office Activity: Increasing sophistication in pre-IPO and anchor investments

Supply-Side Drivers

• Regulatory Efficiency: SEBI process improvements enabling faster time-to-market

• Exit Monetization: PE/VC exits and promoter partial monetization driving supply

• Capital Requirements: Growing businesses seeking capital for expansion and market consolidation

Market Microstructure
• Pricing Discipline: Market showing increased sensitivity to valuation metrics and business quality

• Lock-in Considerations: Promoter lock-in periods and governance commitments influencing investor confidence

• Aftermarket Support: Market-making and liquidity provision becoming more sophisticated

Valuation & Pricing Environment

Mainboard Valuation Framework
• Premium for Quality: High-quality franchises commanding premium multiples relative to listed peers

• Relative Value Analysis: Peer comparison critical for pricing (e.g., AMC space, NBFC segment benchmarking)

• Growth Premium: Companies with clear growth visibility and execution track record receiving valuation support

SME Pricing Dynamics

• Earnings-Based Multiples: Near-term earnings forecasts driving valuation models

• Execution Risk Discounting: Market applying higher discount rates for execution-dependent business models

• Liquidity Considerations: Post-listing liquidity and float size impacting pricing decisions

Risk Assessment Framework

Systematic Risks
• Policy & Macro Shocks: Global monetary policy shifts, commodity price volatility, and geopolitical developments

• Regulatory Changes: Tax policy modifications, sectoral regulations, and compliance cost implications

• Market Liquidity: Broad market sentiment shifts affecting risk appetite for new issues

Company-Specific Risks

• Execution Risk: Revenue growth delivery and profitability achievement relative to projections

• Corporate Governance: Transparency, board composition, and minority shareholder protection

• Business Model Sustainability: Competitive moats, market position, and technological relevance

SME-Specific Considerations

• Promoter Quality: Management track record, succession planning, and strategic vision

• Financial Reporting: Audit quality, internal controls, and financial disclosure standards

• Market Position: Competitive dynamics, supplier/customer relationships, and scalability potential

Strategic Recommendations

For Retail Investors

Mainboard Strategy:

• Focus on anchor-backed offerings with strong institutional participation

• Prioritize companies with clear earnings visibility and established market positions

• Maintain disciplined position sizing relative to overall portfolio
SME Approach:

• Limit SME exposure to 3-5% of investible assets

• Conduct thorough fundamental analysis including management assessment

• Avoid momentum-driven investments without conviction on business fundamentals

For Institutional/HNI Investors

Due Diligence Enhancement:

• Utilize anchor allocation windows for quality mainboard opportunities

• Conduct comprehensive management meetings and site visits for SME investments

• Focus on governance metrics, lock-in structures, and minority shareholder rights

Portfolio Considerations:

• Balance IPO allocations with existing sectoral exposures

• Consider liquidity requirements and lock-in periods in allocation decisions

• Monitor correlation risks with existing holdings

For Corporate Issuers

Best Practices:

• Provide clear, detailed use-of-proceeds disclosure
• Implement robust investor communication strategy
• Ensure strong governance structures and transparency measures
• Consider staged fundraising approach to optimize market timing

Market Outlook & Key Dates

Near-term Pipeline (Q3/Q4 2025)

• Tata Capital: Expected roadshow completion and pricing in late September 2025

• ICICI Prudential AMC: DRHP review process ongoing, likely Q4 2025/Q1 2026 launch

• Inox Clean Energy: Large renewable energy offering targeting Q4 2025/early 2026

• Multiple SME Issues: Continued weekly issuance windows through October 2025

Medium-term Considerations (2026 Outlook)

• Pipeline Development: Strong deal flow expected to continue into 2026

• Market Capacity: Monitor absorption capacity for large-ticket deals

• Regulatory Evolution: Potential further streamlining of IPO processes

Key Takeaways
The September 2025 IPO environment offers significant opportunities across both mainboard and SME segments, supported by favorable liquidity conditions and regulatory efficiency improvements. Success requires disciplined selection criteria, thorough due diligence, and appropriate risk management.

The market’s increased sophistication in valuation and governance assessment creates opportunities for quality issuers while demanding higher standards across all participants.

Key Success Factors:

• Selectivity: Focus on quality businesses with sustainable competitive advantages

• Due Diligence: Enhanced analysis particularly critical for SME investments

• Risk Management: Appropriate position sizing and portfolio diversification

• Market Timing: Consider broader market conditions and liquidity factors
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Disclaimer: This report is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Investors should conduct independent analysis and consult financial advisors before making investment decisions.
Sources: SEBI filings, exchange data, company disclosures, market research. Data as of September 10, 2025.