The home inventory market has been reeling underneath heavy promoting stress for the previous few months. Benchmark indices, Sensex and Nifty, have misplaced almost 13 per cent from their peaks touched in September final yr, eroding almost Rs 79 lakh crore of traders’ wealth. A pointy correction within the secondary market has impacted the preliminary public providing (IPO) fundraising plans of corporations. Over two dozen corporations that obtained IPO approval from the market regulator, SEBI, have but to launch their choices. These corporations are ready for the market to stabilise earlier than they proceed with their IPO fundraising plans. A droop within the secondary market additionally lowers retail traders’ curiosity within the main market.
In response to knowledge obtained from Prime Database, 26 home corporations obtained approval from the Securities and Trade Board of India (SEBI) between April-December 2024 and are but to hit the first market. These corporations have plans to lift Rs 42,390 crore by means of IPOs. An organization has a 12-month interval to launch its IPO after receiving approval from the market regulator.
The extended delay by corporations in launching their IPOs may be attributed to the present market volatility, characterised by weakening investor confidence resulting from issues over tariff wars and lacklustre company earnings with incessant promoting by overseas traders including to the market woes.
“Firms that obtained approval from October 2024 onwards, which is when the selloff began, until December 2024 are maybe hoping that market situations will enhance for them to launch their IPO,” mentioned Pranav Haldea, Managing Director, PRIME Database Group.
A number of the large IPOs which have obtained SEBI’s nod between October and December 2024 and are but to launch the provide are Schloss Bangalore Ltd (Rs 5,000 crore), Ather Power Ltd (Rs 4,500 crore), Avanse Monetary Providers Ltd (Rs 3,500 crore), Manjushree Technopack Ltd (Rs 3,000 crore) and Ecom Specific Ltd (Rs 2,600 crore).
In addition to, there are just a few corporations which have obtained regulatory approval between April-September 2024 and nonetheless have legitimate approvals embody Nationwide Securities Depository Ltd (Rs 3,000 crore), S Ok Finance (Rs 2,200 crore), Kalpataru Ltd (Rs 1,590 crore), Asirvad Micro Finance Ltd (Rs 1,500 crore) and Belstar Microfinance Ltd (Rs 1,300 crore).
These corporations appear to have missed the window to launch their IPO, Haldea mentioned.
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The sluggish IPO exercise follows a sturdy IPO fundraising by corporations in 2024. Within the final calendar yr, 91 corporations raised Rs 1.6 lakh crore by means of IPOs. The variety of small and medium enterprises (SME) IPO touched a excessive of 240 in comparison with 182 in 2023, as per Prime Database.
Secondary market correction
After touching report highs in September 2024, the Sensex and the Nifty have misplaced almost 13 per cent, to this point. The BSE’s 30-share Sensex has plunged 11,503.54 factors, or 13.4 per cent from it’s all-time excessive of 85,836.12. The broader Nifty 50 has corrected 3,663.55 factors, or 13.97 per cent, from its peak of 26,216.05.
Even the broader market has witnessed a large sell-off, with BSE Smallcap crashing 21 per cent and BSE Midcap falling 20 per cent from their report highs.
This fall in home fairness benchmarks has primarily been led by a large sell-off by overseas portfolio traders (FPIs) who dumped over Rs 2.12 lakh crore price of equities since October 2024. Buyers’ sell-off can be pushed by issues over tariff wars, overvalued home shares and subdued quarterly earnings of corporates.
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Influence of secondary market fall on main issuances
Analysts mentioned a correction within the secondary market has a major affect on the IPO market. The present fall within the inventory market has led to a decline in month-to-month IPOs in 2025. Whereas in January solely six corporations launched IPOs, February noticed solely three main market choices. That is a lot decrease than the variety of IPOs seen in September (12), October (6), November (8) and December (15)
In a falling market, corporations additionally don’t need to launch IPOs as they might battle to lift the focused funds, analysts mentioned. “Promoters don’t need to offload their stake in a nasty market. In a declining market, they don’t get the valuation, and subscription (to the IPO) can be not excellent,” mentioned Ashish Nanda, Chief Digital Enterprise Officer, Kotak Securities.
When a retail investor incurs losses within the secondary market, his curiosity within the IPO market additionally reduces. Previously additionally there have been many corporations which have chosen to not launch their IPOs even after receiving regulatory approval, resulting from unfavourable market situations.
“Since 2019, 94 corporations trying to elevate roughly Rs 1.35 lakh crore, allowed their IPO approval to lapse. IPO is a once-in-a-lifetime occasion for an organization and when markets are unstable or bearish, corporations desire to let their approval lapse,” Haldea mentioned.
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Primary board IPOs- month-to-month abstract
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