New Delhi, March 9 (Web News) – After a strong performance in 2024, the Indian IPO market appears to be slowing down, with no new public offerings launched in the past three weeks. The decline in IPO activity coincides with a downturn in stock markets, leading companies to hold back their listing plans.
As per agency reports, the slowdown is evident in the numbers. In January, only five companies went public, while February saw just four listings. This marks a significant drop compared to December 2023, when 16 companies entered the stock market. The last major IPO to open for subscription was Quality Power Electrical Equipment Limited, which launched on February 14 for a three-day bidding period.
The trend of reduced activity is further highlighted by at least three companies—Advanced System-Tech, SFC Environmental Technologies, and Vini Corporation—pulling back their draft documents in January and February, effectively shelving their IPO plans. This shift follows an impressive 2024, when a total of 91 IPOs collectively raised ₹1.6 lakh crore, fueled by strong retail participation, a robust economy, and a surge in private capital expenditure.
Market analysts attribute the current lull to corrections in the secondary market during January and February, which negatively impacted share prices of already listed companies. According to Equirus Managing Director and Head of Investment Banking, Bhavesh Shah, this downturn has led investors to focus on their existing portfolios rather than seeking new opportunities through IPOs. He emphasized that investor caution has played a key role in reducing market activity for new listings.
Despite the short-term slowdown, the long-term outlook remains positive. Anand Rathi Advisors’ Director and Head of ECM Investment Banking, V. Prashant Rao, stated that the IPO pipeline remains strong, indicating that new public offerings could regain momentum once market conditions stabilize.
