The year had begun on a strong note. During the March quarter, 18 mainboard IPOs collectively raised ₹18,778 crore. The number of issues was twice that of the corresponding period a year earlier, when companies had mobilised ₹15,723 crore.
However, that momentum has weakened in recent weeks, with the conflict in West Asia dampening investor confidence. In April so far, only one mainboard IPO has hit the market, raising a modest ₹150 crore.
According to Prashant Singhal, Partner and India Markets Leader at EY, uncertainty in India’s primary market is likely to persist for at least the next two to three months, depending on how the geopolitical situation unfolds.
The market correction in March, coupled with an unclear outlook, has also led major institutional investors—who typically serve as anchor investors in IPOs—to adopt a more cautious stance on valuations.
Nilesh Shah, Managing Director at Kotak Mutual Fund told ET that there is currently a gap between the valuation expectations of issuers and investors. Companies are seeking valuations based on market conditions before the conflict, while investors are pricing offerings based on the current, more uncertain environment. He added that IPO activity is likely to accelerate once both sides align on pricing expectations.
Despite the temporary slowdown, the IPO pipeline remains strong. Data from Prime Database shows that, as of April 17, a total of 146 companies had received approval from the Securities and Exchange Board of India (Sebi) to collectively raise ₹2.11 lakh crore.
