No IPOs hit main market as selloff shakes India’s stocks
Indian IPO activity slowed as no main-bourse listings launched in the past three weeks. A market correction and investor caution led to this decline.
Only five companies listed in January and four in February, a sharp drop from 16 in December 2024. Quality Power Electrical Equipment Ltd was the last IPO to open on February 14. Meanwhile, Advanced Sys-tek, SFC Environmental Technologies, and Viney Corporation withdrew IPO plans in January and February, reflecting the downturn.
In 2024, 91 IPOs raised ₹1.6 lakh crore, driven by retail participation and economic growth. However, secondary market losses in early 2025 shifted investor focus to existing portfolios.
Bhavesh Shah of Equirus blamed the slowdown on falling stock prices. Investors became cautious, reducing their appetite for new listings. V. Prashant Rao of Anand Rathi Advisors remained optimistic, citing a strong IPO pipeline.
Currently, 45 companies with SEBI approval plan to raise ₹67,000 crore, while 69 more await approval for ₹1.15 lakh crore. Recent filings include Knowledge Realty Trust, backed by Sattva Group and Blackstone, which aims to raise ₹6,200 crore through a REIT IPO.
Despite the lull, experts predict a market revival in the coming months. Shah expects investor confidence to return, aided by strong mutual fund inflows. He advised issuers to adjust IPO valuations to attract investors.
Rao echoed this view, suggesting companies may need to offer more competitive pricing to sustain interest. As conditions stabilize, IPO activity is likely to rebound.
