Agrawal said she is not worried about the rise in initial public offering (IPOs) and does not believe the market is seeing low-quality issuances. Instead, she highlighted that investors today are applying strong filters around management quality, governance, and business models.
She noted that in 2024, the mainboard saw about ₹1.5 lakh crore in equity issuances, and 2025 is likely to exceed that number.Agrawal said the upcoming IPO pipeline is broad-based, unlike earlier years when only a few sectors dominated.
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For 2026, she expects strong activity across new-age tech and consumer-tech businesses, renewable energy companies, and manufacturing—especially precision engineering, R&D-led, and tech-driven manufacturing.According to her, manufacturing is seeing a major shift, with companies focused on precision, technology, and innovation. She believes growth capital for these companies will increasingly come through IPOs over the next 12–15 months.
Agrawal believes IPO pricing is an art, not a formula. According to her, investors today are backing ideas and business models rather than focusing narrowly on near-term financial metrics. Markets have matured, and investors are evaluating quality, management strength, and long-term potential instead of simply looking at one-year revenue guidance.
She noted that pricing is shaped after extensive discussions with more than 100 domestic and global investors, rather than being driven by just a few funds.
Agrawal added that IPO pricing has been very accommodative over the last five to six months, as issuers have taken investor feedback seriously and adjusted valuations accordingly. This approach has helped recent IPOs deliver 20–25% listing gains.
For the entire discussion, watch the accompanying video
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