Tamil Nadu’s business houses line up for the IPO route

Several newer Tamil Nadu-based businesses are embracing the IPO route, moving away from their conservative reputation, according to recent reports. Companies Milky Mist and Lalithaa Jewellery made their public debuts this year, attracting strong investor interest. Other companies expected to follow suit include drone technology firm Garuda Aerospace and consumer durables company Sathya Agencies.

Analysts estimate that around three to four Tamil Nadu firms go public each year. Over the past three years, Avalon Technologies Ltd., R.K. Swamy Ltd., Northern Arc Capital Ltd., Dr. Agarwal’s Healthcare Ltd., and Glottis Ltd. have also sought to tap the IPO market. Promoters are realizing that sharing ownership with the public can significantly increase a company's value, explained Nagappan Valliappan, a former Federation of Indian Stock Exchanges chairman.

Many family-owned businesses in Tamil Nadu, often spanning three or four generations, are now considering going public to avoid intergenerational disputes. Pranav Haldea, managing director of Prime Database Group, attributes this trend to the "net worth creation effect," where IPOs of family-controlled companies have led to substantial valuation growth and wealth creation among promoters.

This newfound focus on public market exposure has sparked a sense of FOMO (fear of missing out) among other family-owned businesses. Data from Prime Database shows that 2023 saw 57 IPOs in India raising ₹49,436 crore, 2024 witnessed 91 issues raising ₹1,59,784 crore, and 2025 had 103 issues raising ₹1,75,914 crore. In 2026, 61 issues raised ₹72,283 crore.

IPOs have made company executives more disciplined and accountable, according to K. Rathnam, CEO of Milky Mist Dairy Food.