Tamil Nadu IPO Rush: Garuda Aerospace, Sathya Agencies Join Growing Pipeline

Chennai-headquartered drone technology company Garuda Aerospace and consumer durables company Sathya Agencies are expected to join the growing pipeline of Tamil Nadu businesses considering an initial public offering (IPO). The development comes as more family-owned and closely held businesses in the state look at public markets as a route to raise capital and unlock value.

Why Are More Tamil Nadu Companies Considering IPOs?

Over the past three years, several companies based in Tamil Nadu, including Avalon Technologies, Northern Arc Capital, Dr Agarwals Healthcare, and Glottis, have tapped the IPO market.

The shift towards public listings is partly linked to changing attitudes among promoters of family-run businesses. Nagappan Valliappan, a capital market professional and former chairman of the Federation of Indian Stock Exchanges, said the promoter-driven mindset is gradually changing as business owners become more aware of the potential for value creation through public ownership.

The IPO route can also provide an avenue for businesses to access external capital while creating a market-based valuation for their companies.

Another factor is succession within established family businesses. Many such businesses in Tamil Nadu are now in their third or fourth generation, according to a source familiar with family businesses in the state.

Family divisions and disputes can make ownership structures more complicated over time. For some businesses, moving towards a public listing can provide an alternative to continuing with closely held ownership structures.

What Is Driving The IPO Trend Across India?

Pranav Haldea, managing director of Prime Database Group, described the trend as the “net worth creation effect”. According to him, the phenomenon has been visible across India over the past five to six years, particularly in Class B and Class C towns and cities where many businesses have traditionally remained family-controlled.

The success of earlier IPOs has also given other promoters a clearer view of what public markets can offer. Haldea said valuations achieved by some of these companies after listing demonstrated how an IPO could unlock value for promoters.

This has also created a fear of missing out, or FOMO, among other family-owned businesses that are now considering the public-market route.

How Has India’s IPO Market Grown?

Data released by Prime Database indicates that India's issue market has experienced a significant increase over the last few years. In 2023, 57 IPOs were launched in India, altogether raising ₹49,436 crore. The number increased to 91 issues in 2024, with ₹1,59,784 crore raised.

The momentum continued in 2025, when 103 issues raised ₹1,75,914 crore. In 2026, the market has so far recorded 61 issues, which have raised ₹72,283 crore.

Also Read - SBI, SBI Capital Markets Plan Sale Of 1% NSE Stake Through IPO