Tamil Nadu trading houses are setting themselves up for the IPO route

Bombay Stock Exchange (BSE) Head-Issuer Relations and Corporate Sales Radha Kirthivasan and Chairman and CEO of Lalithaa Jewelery M. Kiran Kumar exchange a handshake during the ringing of the trading bell to mark the listing on the BSE in Mumbai on August 24, 2026. Jalicha-Lalithaa is also seen as a director of Kumar Jewellery. | Photo credit: ANI

Several relatively newer trading houses based in Tamil Nadu are shedding their conservative label and knocking on the doors of SEBI to tap the IPO market. Two companies Erode-based Milky Mist and Chennai-based Lalithaa Jewelery have already gone public this year and witnessed strong subscriptions. Few more are expected to join the queue in the coming months. Chennai-based drone technology company Garuda Aerospace and consumer durables company Sathya Agencies are also expected to join the IPO queue.

“Three to four companies from Tamil Nadu get listed every year,” said a market watcher. Over the past three years, several Tamil Nadu-based companies, including Avalon Technologies Ltd., RK Swamy Ltd., Northern Arc Capital Ltd., Dr. Agarwal’s Healthcare Ltd. and Glottis Ltd., tapped the IPO market.

“The promoter-driven mindset is slowly changing. People have started to realize that if I own 100% of a company, it might be worth ₹100, but if I share at least 25% with the public, the value of the company could go up to ₹500.” “This kind of value creation was not known before,” said former chairman of the Stock Exchange of India Valliappan, a capital market expert from Nagappan.

“If you look at family businesses in Tamil Nadu, many of them are now in their third or fourth generation. There are family feuds and splits. As a result, some businesses feel that it is better to go public and sell the business after a certain period of time, rather than deal with family tussles,” said a source who deals with family businesses in Tamil Nadu.

Pranav Haldea, managing director of Prime Database Group, said: “What you are seeing in Tamil Nadu is what I like to call the ‘net worth creation effect’. It has happened all over India in the last 5-6 years. B/C cities and towns in India have been largely controlled by family-controlled and closely held businesses that have never had much interest in attracting foreign investors.”

Mr Haldea added: “What has happened is that several IPOs of this type of company have started to happen and others have seen the kind of appreciation and net worth creation that can happen when value is unlocked through an IPO, with several of these promoters becoming millionaires or even billionaires. This has created a sense of FOMO (fear of missing out) among other family businesses.”

According to data shared by Prime Database, a capital markets information provider, there were 57 issues across India in 2023, raising ₹49,436 crore. In 2024, the number increased to 91 issues, raising ₹1,59,784 crore. The momentum continued in 2025 with 103 issues fetching ₹1,75,914 crore. In the current year (2026), the numbers are 61 releases, making ₹72,283 crore.

Those who have gone public through an IPO say it has made them more disciplined and accountable. You are constantly monitored and accountable to your shareholders. “The capital gives us the ability to invest in the next phase of growth, but equally important is the discipline that comes with being a public company,” said K. Rathnam, director and CEO of Milky Mist Dairy Food.

Published – 30 Aug 2026 17:10 IST