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

Tamil Nadu’s business landscape is witnessing a shift as more homegrown companies embrace the initial public offering (IPO) route to raise capital and expand operations. This trend, marked by a departure from traditional conservative business practices, has seen companies like Milky Mist Dairy Food and Lalithaa Jewellery successfully go public this year, drawing strong investor interest.

Milky Mist, based in Erode, and Lalithaa Jewellery, headquartered in Chennai, are among the first to list in 2024, with both offerings receiving robust subscription numbers. Following their success, drone technology firm Garuda Aerospace, also from Chennai, and consumer durables company Sathya Agencies are preparing to join the IPO queue in the coming months. According to market analysts, Tamil Nadu typically sees three to four companies listing annually. Over the past three years, several notable firms including Avalon Technologies Ltd., R.K. Swamy Ltd., Northern Arc Capital Ltd., Dr. Agarwal’s Healthcare Ltd., and Glottis Ltd. have also tapped the public markets.

The growing inclination toward IPOs reflects a broader evolution in corporate governance and ownership structures, particularly among family-run businesses in Tamil Nadu. Nagappan Valliappan, former chairman of the Federation of Indian Stock Exchanges, notes a shift in mindset among promoters. “Owners are realizing that retaining 100% ownership may cap the company’s value at ₹100 crore, but sharing at least 25% with the public can unlock much higher valuations,” he explains. This shift is also driven by generational challenges in family businesses, where disputes and asset divisions prompt owners to consider public listings as a strategic exit or consolidation tool.

Pranav Haldea, managing director of Prime Database Group, describes this phenomenon as the “net worth creation effect,” a trend observed across India over the past five to six years. “Family-controlled businesses in smaller cities and towns have historically avoided external investors,” he says. “But as a few successful IPOs demonstrated significant value unlocking and wealth creation, others followed suit out of fear of missing out.” The numbers support this trend. According to Prime Database, India saw 57 IPOs in 2023, raising ₹49,436 crore. In 2024, the number rose to 91 issues, raising ₹1,59,784 crore. The momentum continued in 2025 with 103 IPOs aggregating ₹1,75,914 crore, while 2026 has so far recorded 61 issues raising ₹72,283 crore as of now.

Companies that have gone public emphasize the operational and financial discipline that comes with being publicly listed. K. Rathnam, whole-time director and CEO of Milky Mist Dairy Food, highlights the dual benefits of capital infusion and governance enhancement. “The capital enables us to invest in future growth, but the discipline of being a public company—answerable to shareholders and under constant market scrutiny—is equally transformative,” he says.

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