The recent upheaval in global markets, driven by mounting fears of a US recession and intensifying trade tensions, has put a brake on the initial public offerings (IPOs) of LG Electronics India and Ather Energy, as per a media report. Both companies had initially planned to launch their IPOs on the 3rd or 4th week of April 2025, capitalising on what had appeared to be a recovering market. However, the sharp and sudden shift in investor sentiment has forced a reassessment of those plans.
LG Electronics India, the home appliance giant, was preparing an IPO estimated at ₹15,000 crore — potentially becoming the fifth-largest in Indian history. Meanwhile, Ather Energy, the electric scooter manufacturer, had set its sights on raising ₹4,000 crore through its public issue. These ambitious listings, however, now face uncertainty.
Sources suggest that both companies are exploring the possibility of deferring their launches. There are also indications of internal discussions around scaling back the offer sizes and valuations to reflect prevailing market conditions. It is important to note, though, that no official confirmation has been made regarding any revisions.
Only weeks ago, the companies had reportedly locked in tentative dates, booked venues, and initiated IPO roadshows. The equity markets had rebounded from their March lows, briefly reviving hopes for successful listings. But that optimism was short-lived. A swift decline in benchmark indices, driven by global macroeconomic concerns, has now cast a shadow over these large-scale offerings.
Both LG and Ather had secured regulatory approvals — with LG Electronics India receiving the Securities and Exchange Board of India (Sebi)’s nod in March, and Ather Energy in December 2024. Despite this readiness, the deteriorating sentiment has forced issuers to reconsider timing.
LG and Ather are not alone. Several other companies, including Smartworks, Brigade Hotel Ventures, Aegis Vopak Terminals, National Securities Depository, IndiQube, and Indogulf Cropsciences, were also preparing to tap the market in the coming months. The current volatility, however, has introduced a wave of caution.
The benchmark Nifty fell to its lowest level since June 2024. Consequently, March 2025 saw no mainboard IPOs — the first such dry spell since May 2023.
So far, in 2025, IPO activity has significantly slowed. Just nine companies have raised a total of ₹15,723 crore — a stark contrast to 2024, when 91 companies raised a record ₹1.6 trillion. While the market did witness a short-lived rebound of 8% from the March lows, this momentum has proven insufficient to sustain confidence in new public offerings.
If April ends without a single IPO, it will mark the longest gap since February 2023. Such a prolonged lull underlines the nervousness pervading equity capital markets, even as some listed firms continue to pursue share sales amid fleeting moments of stability.
As global economic indicators remain mixed and domestic markets react with heightened sensitivity, the IPO landscape in India appears to be entering a cautious phase. Companies like LG Electronics India and Ather Energy, which had previously seen strong investor interest, are now in wait-and-watch mode — a reflection of the complex interplay between market timing, valuation expectations, and investor confidence.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 9, 2025, 2:46 PM IST
Team Angel One
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