- India,
- 09-Mar-2025 09:00 PM IST
Share Market: The impact of the recent decline in the Indian stock market is clearly visible on the IPO market. No major company has been listed in the stock market for the last few weeks, and many companies have postponed their IPO plans till the next quarter. At present, 44 companies have got approval for IPO by SEBI, but due to market volatility, companies are delaying the IPO.Slowdown in IPO activities in 2025The year 2024 was very good for the Indian IPO market, but it seems to be stagnant in early 2025. Only five companies were listed in January and only four in February, while 16 companies launched IPOs in December 2024. The main reason for this decline is the ongoing correction in the market and the caution of investors.Recently listed IPOsRecently some companies launched their IPOs, among which Quality Power Electrical Equipment Limited was prominent. This IPO was open for three-day bidding on February 14. However, some companies postponed their IPO plans in view of the market situation. Companies such as Advanced System-Tech, SFC Environmental Technologies and Vini Corporation have withdrawn their documents.Capital raised from IPO in 2024IPO activity in the Indian stock market was quite strong in 2024. A collective Rs 1.6 lakh crore was raised through 91 public issues that year. Strong participation of retail investors, strength of the Indian economy and increase in private capital expenditure played an important role in this performance. But this enthusiasm seems to be waning in early 2025.Reasons for decline in IPO listingsIPO activity is currently slowing down due to market uncertainty and correction in the secondary market. Market experts believe that investors are currently focused on their existing portfolio rather than new listings. According to V. Prashant Rao, Director, Anand Rathi Advisors, even though the IPO market has been affected in the short term, from a long term perspective, the pipeline of IPOs remains strong.ConclusionThe current conditions of the Indian stock market have made the IPO market volatile. However, in the long term, this market remains strong and companies are waiting for the right time. With the return of stability in the market, IPO activities may pick up again.