After seeing a major surge in activity in 2024, the IPO market in India is witnessing a slowdown in the new year. In the last three weeks, no main-bourse initial pubic offerings (IPOs) have hit the market owing to a correction in the secondary market.
In 2025 itself, only five firms went public in January, while four firms listed in the primary market in February. In comparison, 16 companies filed their maiden offerings in December 2024 alone, reported PTI.
Reasons Behind The Slowdown
The latest IPO was Quality Power Electrical Equipment, whose subscription window was opened for three days from February 14, 2025. However, atleast three firms namely, Viney Corporation, Advanced Sys-tek, and SFC Environmental Technologies, decided to withdraw their IPOs and pulled their draft papers in January and February.
This shift comes after 2024 witnessed 91 companies make their debut in the stock market and collectively raised Rs 1.6 lakh crore. This surge in IPO activity was driven by strong retail participation, booming private capex, and a resilient economy.
Bhavesh Shah, MD and Head of Investment Banking, Equirus, said this slowdown was attributed to a correction in the secondary market. This severely impacted the share prices of multiple listed firms.
“As a result, investors have shifted focus to their existing portfolios rather than exploring new listings. Diminished investor attention on new IPOs has contributed to the slowdown in market activity,” the expert said.
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IPOs Ahead
However, V Prashant Rao, Director and Head of ECM Investment Banking, Anand Rathi Advisors, highlighted that the outlook for the long term remained favourable. “We are seeing an impressive number of documents getting filed and waiting for market conditions to stabilize. Currently, 45 companies with Sebi approval are looking to raise over Rs 67,000 crore and 69 companies are awaiting Sebi-approval, aiming to raise over Rs 1.15 lakh crore. Notably, out of the 69 companies, 45 companies filed DRHPs in the last couple of months,” Rao added.
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