Market volatility puts upcoming IPOs in a wait-and-watch mode

Market volatility is causing many companies in India to reconsider their Initial Public Offerings (IPOs) as geopolitical tensions in West Asia escalate. This uncertainty has led firms to adopt a cautious approach regarding their launch timelines and pricing strategies. According to Bhavesh Shah, managing director of Equirus Capital, issuers are being more selective about when to launch based on current investor sentiment. Currently, 141 companies have received regulatory approval to collectively raise approximately ₹1.64 lakh crore through IPOs. However, with 80 firms having an approval window of 3 to 9 months, concerns are mounting regarding investor appetite amidst a fluctuating secondary market. Industry experts, including Ganesh Jagdishen, CEO of Plutus Global, highlight that international institutional investors, who are crucial for backing Indian IPOs, are adopting a risk-averse stance due to ongoing global tensions and trade recalibrations. As a result, some companies may delay their IPO launches until market conditions stabilize. Notably, five companies have imminent expiration dates for their approvals, adding pressure for timely decisions. Overall, the primary market's performance heavily relies on trends in the secondary market, which has seen a decline of about 3% recently, further complicating the IPO landscape.