IPO Momentum Stalls in India Amid Weak Sentiment and Global Uncertainty

It was conveyed by investment bankers that at least two significant initial public offerings (IPOs), collectively valued at approximately $759 million, were expected to be delayed in India. This development was seen as part of a broader trend wherein an increasing number of Indian companies had reportedly decided to postpone their public listings due to weakening investor sentiment and uncertain macroeconomic conditions.

Among the companies whose IPOs had been put on hold were Avanse Financial Services, an education loan provider, and Anthem Biosciences, a prominent contract drug manufacturer. These entities were said to be joining a list that already included the Indian division of South Korean conglomerate LG Electronics. Industry professionals indicated that these postponements were reflective of growing caution in the capital markets, particularly in the context of geopolitical instability and ongoing global trade disputes.

According to banking insiders, institutional investor participation had remained selective and subdued. Suraj Krishnaswamy, who serves as managing director of investment banking at Axis Capital, was cited as having stated that only a limited number of institutional investors were currently active, owing in large part to prevailing global uncertainties. Additionally, tensions between India and Pakistan were also believed to have contributed to a less favorable environment for capital raising.

This shift in IPO plans was viewed as emblematic of a wider hesitation within corporate circles, where companies had begun reassessing their expansion and fundraising strategies amid a cloudy economic outlook. The geopolitical tensions, particularly those linked to U.S. trade policy under President Donald Trump, were thought to have had a dampening effect on investor confidence worldwide. As a result, several Indian firms that had previously received regulatory clearance for their IPOs were said to be re-evaluating their market timing.

One notable case that underscored the fragile state of investor appetite was that of electric scooter manufacturer Ather Energy. Its IPO, which had been anticipated to serve as a bellwether for renewed enthusiasm in India’s primary market, failed to deliver the expected optimism. Despite opening at a modest 2% premium to its issue price of ₹321 per share, the stock ultimately closed 5.8% lower by the end of the day. This performance was interpreted as a signal of continued investor skepticism, especially in sectors such as electric vehicles (EVs), where profitability remained uncertain and competitive pressures were intensifying.

Vinit Bolinjkar, head of research at Ventura Securities, was quoted as having observed that the lukewarm reception to Ather’s IPO reflected persistent concerns about the broader EV market, including challenges related to sustainability and financial viability. The listing, which had ended a two-month hiatus in mainboard IPOs, had been closely watched for signs of a market rebound. However, its underwhelming outcome reinforced the view that risk aversion among investors remained pronounced.

It was further noted that approximately 58 companies with regulatory approval from Indian authorities had not yet moved forward with their IPOs. These delays were attributed largely to disruptions in the global financial landscape, which were perceived to have been intensified by the tariff measures introduced by the United States. The resultant slowdown in economic activity and fears of an impending global recession had reportedly led many corporate issuers to shelve or defer their public offerings.

Avanse Financial Services had reportedly secured the necessary approvals for its \$356 million IPO in October 2024, while Anthem Biosciences had been given clearance to raise \$403 million as recently as April 3. However, both firms had declined to provide comments when approached regarding their revised IPO plans.

Market analysts and investment advisors believed that unless macroeconomic conditions improved significantly, further delays in IPO activity could be expected. The combination of geopolitical risks, investor caution, and lackluster market performance was considered detrimental to new listings, especially for companies in sectors viewed as high-risk or requiring long-term capital commitments.

In light of these developments, it was being widely anticipated that companies would adopt a more measured approach to capital market entry, with some possibly exploring alternative fundraising methods or waiting for more stable conditions. Until investor sentiment showed clearer signs of recovery, India’s primary market was likely to remain subdued, with many issuers continuing to adopt a wait-and-watch strategy.