Persistent volatility in the Indian stock market has led to a significant slowdown in initial public offerings (IPOs), with 44 companies, including National Securities Depository Ltd. (NSDL), Ather Energy, and JSW Cement, deferring their listing plans. These firms, along with other major names such as SK Finance, Avanse Financial Services, Manjushree Technopack, Schloss Bangalore, and SMPP, have opted to wait for more favourable market conditions before proceeding with their public offerings.
As per news report, collectively, these companies were planning to raise approximately ₹66,000 crore through the IPO route and had already secured regulatory approval from SEBI. However, given the prevailing market conditions, they have chosen to delay their launches.
The Indian equity market has witnessed sharp corrections in recent months, leading to a decline in investor confidence. The BSE Sensex and NSE Nifty have fallen up to 14% from their peaks in September 2024, resulting in a staggering ₹90 lakh crore erosion in investor wealth.
This downturn has directly impacted the primary market, making investors more risk-averse. As market conditions become increasingly volatile, the enthusiasm surrounding IPOs has waned, leading to lower participation and reduced appetite for newly issued stocks.
The primary market, once a hotspot of activity, is now facing heightened valuation concerns and sharp corrections in mid-cap and small-cap stocks. Several factors have contributed to this downturn, including:
As a result, companies that had planned to go public are now reconsidering their options, fearing tepid investor response and limited liquidity.
After a record-breaking 2024, the IPO market has slowed considerably in 2025. In the first two months of the year, 10 mainboard IPOs raised a total of ₹16,000 crore—a 37% decline from the ₹25,400 crore raised by 15 IPOs in December 2024. The latter was the highest monthly fundraising since February 2007, when 18 firms launched IPOs.
For context, IPO activity in the last few years has been as follows:
This trend suggests that, while 2024 saw a peak in IPO activity, 2025 has started on a slower note due to unfavourable market conditions.
The downturn in IPO activity is further compounded by the underwhelming performance of big-ticket IPOs such as Hexaware Technologies, Dr Agarwal’s Health Care, and Ajax Engineering.
The S&P BSE IPO Index, which tracks the performance of newly listed companies, has slumped 20.75% year-to-date (YTD) as of March 18, 2025 (12:40 PM). In comparison, the BSE Sensex has dropped by only 4% in 2025, indicating a significant underperformance in the IPO segment.
Despite the current slowdown, the IPO pipeline remains strong. 67 companies are awaiting SEBI approval to collectively raise ₹1.17 lakh crore. Some of the notable companies in this list include:
Additionally, a wave of startups is expected to file their offer documents soon. Some of the prominent names preparing for IPOs include:
The IPO market, once brimming with activity, has slowed down considerably due to persistent market volatility and weak investor sentiment. While companies continue to queue up for SEBI approval, the actual listing activity is likely to pick up only when market conditions stabilise. Until then, firms and investors alike remain in wait-and-watch mode.
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: Mar 18, 2025, 4:37 PM IST
Team Angel One
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