India’s IPO market has slowed down, with no new main-bourse listings in the past three weeks. Experts attribute this to a correction in the secondary market, shifting investor focus to existing portfolios. Despite the slowdown, over 45 companies have received SEBI approval, and nearly 70 await approval, indicating strong future potential.
India’s initial public offering (IPO) market has witnessed a significant slowdown, with no new main-bourse listings in the past three weeks. Experts attribute this decline to a correction in the secondary market, which has led investors to focus on their existing portfolios rather than exploring new listings.
The slowdown is evident in the numbers. Only five companies went public in January and four in February, a sharp contrast to the 16 listings in December 2024. The last major IPO was by Quality Power Electrical Equipment Ltd, which opened for bidding on February 14. Additionally, at least three companies—Advanced Sys-tek, SFC Environmental Technologies, and Viney Corporation—withdrew their IPO plans in January and February, further highlighting the cautious market sentiment.
This comes after a robust 2024, when 91 IPOs collectively raised ₹1.6 lakh crore, fueled by strong retail participation and growing private capital expenditure. However, the recent market correction has impacted the share prices of several listed companies, leading investors to exercise caution before committing to new IPOs.
Market Experts Weigh In
According to Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus, the slowdown is largely due to market volatility. “Investors are currently more focused on stabilizing their existing holdings rather than taking risks with new IPOs,” he said. He also noted that issuers may need to reconsider their IPO valuations to attract investors in the current market conditions.
Despite the current dip, the future remains promising. V. Prashant Rao, Director and Head of ECM Investment Banking at Anand Rathi Advisors, emphasized that a strong IPO pipeline is forming. “We have 45 companies with SEBI approval, looking to raise over ₹67,000 crore, and 69 more companies awaiting approval, aiming for ₹1.15 lakh crore,” Rao stated.
In the past two months alone, nearly 30 companies have filed preliminary IPO papers with SEBI. Additionally, Knowledge Realty Trust, sponsored by Sattva Group and Blackstone, recently submitted documents for its maiden REIT public issue, aiming to raise ₹6,200 crore.
Outlook for the IPO Market
While market conditions remain challenging, analysts believe that as the economy stabilizes, the IPO market will see a resurgence. Shah remains optimistic, predicting that investor confidence will return in the coming months. “Strong mutual fund inflows and recalibrated IPO pricing could help attract investors back into the market,” he added.
With a robust pipeline of companies preparing to go public, India’s IPO market is expected to regain momentum once market conditions improve, offering new investment opportunities in the long run.
