The Indian initial public offering (IPO) market has seen a significant slowdown this year amid uncertainty around tariffs and their impact on domestic equities, higher valuations, muted corporate earnings, and weak investor appetite. While the secondary market has regained lost ground, with the benchmark indices—the BSE Sensex and the NSE Nifty—rebounding up to 17% from their 52-week lows touched in April this year, the primary market is showing no sign of recovery.

By the year’s end, India was one of the world’s hottest IPO markets, with 338 companies making their debut on the bourses in 2024, raising a record $21 billion (around ₹1.8 lakh crore), surpassing the previous high of ₹1.3 lakh crore in 2021. This can be attributed to a robust secondary market, abundant liquidity, decent listing gains, and strong investor appetite.

However, the primary market lost momentum in calendar year 2025 as only 11 mainboard IPOs joined the domestic bourses, with the first 10 listing in the first two months of this year. After a two-month gap, Ather Energy, a leading manufacturer of electric scooters, debuted on May 6, marking the first mainboard IPO of FY26. 

According to data from exchanges, 11 companies raised a total of around ₹19,000 crore via the IPO route so far this year till May 16, compared to ₹27,650 crore garnered by 29 entities during the corresponding period last year.

₹2 lakh crore IPO pipeline faces deadlock

The primary market has been going through a lean patch and there seems to be no conclusive sign that this lull phase will end anytime soon. However, with the recent rally in domestic equities, the primary market, which often mirrors the sentiment of the secondary market, is expected to see a pick-up in IPO activity.

Despite the dry spell in IPO listings, the pipeline remains strong as 130 companies with proposed public issues worth ₹2.1 lakh crore are in queue to list their shares on the BSE and the NSE. As many as 58 companies proposing to raise around ₹1 lakh crore currently have Sebi's approval and are waiting to hit the market, while another 72 companies looking to garner about ₹1.12 lakh crore are awaiting a green signal from the regulator, as per PRIME Database.

Meanwhile, the primary market continues to see surge in fresh filings. Around 80 companies have filed their draft red herring prospectuses (DRHP) with Sebi so far in calendar year 2025, while nearly 40 companies have received the regulator’s approval to launch their public issues.

Can the IPO market regain momentum?

According to analysts, if the IPO market navigates through the current turbulence, there is potential for a pick-up as 2025 progresses. Recently, EV maker Ather Energy launched its public issue after more than two months of a silent period, while Belrise Industries, an auto components manufacturer, is set to hit D-Street next week, looking to raise ₹2,150 crore. Reports suggest that three more companies—Leela Hotels, Aegis Vopak Logistics, and Scoda Tubes—are gearing up to launch their public issues.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said the IPO market is directly correlated to the performance of the secondary market. “During bullish markets, the IPO market also does well and vice versa. The sharp correction in the Nifty from the peak of 26,277 in September 2024 impacted sentiments in the IPO market too.”

Bajaj Broking Research in a note said the slowdown in the IPO market has been impacted by market volatility, tighter liquidity, regulatory scrutiny, and cautious investor sentiment. “High bond yields, global uncertainties, and concerns over valuations have made companies delay listings despite receiving Sebi approvals,” the brokerage said in a note.

“Over the next 12–18 months, a revival is likely if interest rates ease, market volatility reduces, and corporate earnings remain strong. Stricter Sebi regulations have increased transparency but also extended IPO preparation timelines, prompting companies to carefully plan their market entry,” it added.

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