IPO market loses steam on global market jitters

Indian companies delay IPOs worth $759 million due to weak investment sentiment, global uncertainty, and geopolitical tensions.

At least two initial Public Offerings (IPO) worth $759 million are expected to be delayed, adding to a growing list of Indian companies deciding to postpone plans for Initial Public Offerings due to weak investment sentiment, investment bankers say.

Education loan provider Avanse Financial Services and contract drug maker Anthem Biosciences are among companies that will join notable names such as South Korean Conglomerate LG Electronics' India unit, to put IPO plans on hold for now, the bankers said.

"There are only select institutional investors coming in at this point, given the global uncertainty," Suraj Krishnaswamy, the managing director of investment banking at Axis Capital, said. "And India-Pakistan tensions have not helped".

The trend is an indication that global trade frictions and geopolitical tensions have clouded the economic outlook and caused companies to delay their capital raising and investment plans.

On Tuesday (May 6, 2025), the market debut of Indian electric scooter maker Ather Energy will be a gauge of investor appetite. In pre-market activity, its shares have fluctuated around its issue price of ₹321 ($3.81), indicating a muted start.

Avanse Financial and Anthem Biosciences did not respond to Reuters queries seeking comment.

As many as 58 companies with Indian regulatory clearance have not launched their IPOs due to global market disruptions caused by U.S. President Donald Trump's tariffs, which have negatively affected business sentiment and fuelled recession fears.