The impact of US-imposed tariffs and the resulting global market uncertainty is now being felt in India's capital market. This is evident in the 58 companies that have postponed their Initial Public Offerings (IPOs).
IPO Slowdown: The pace of Initial Public Offerings (IPOs) in the Indian capital market has abruptly slowed. Uncertainty in global markets and the impact of US tariffs have forced companies to postpone their IPO plans. As a result, 58 companies, which had already received approval from the Securities and Exchange Board of India (SEBI), have deferred their issues.
These companies, including prominent names like LG Electronics India, Anthem Biosciences, and Avanse Financial, were collectively aiming to raise approximately ₹21,500 crore (approximately US$2.6 billion). They are now awaiting favorable market conditions.
Market Volatility Increases Caution
The Indian subsidiary of South Korean company LG Electronics, which was planning its IPO for May this year, has postponed it until after August. Kim Chang Tae, the company's CFO, stated that they will proceed with the public offering only when the market provides a fair valuation and stability.
Similarly, Avanse Financial, which received approval in October 2024, and Anthem Biosciences, approved in April, have also put their IPOs on hold.
Ather Energy's Weak Debut Serves as a Warning
This week's weak listing of Ather Energy's IPO has cautioned other companies. The company's shares closed at ₹302 on the BSE, compared to the issue price of ₹321, representing a 5.76% decline. This first-day performance clearly indicates investor hesitancy in the current environment. Notably, Ather had also reduced its issue size by 44%.
Decline in IPO Market Trend
According to data provider Prime Database, India was the world's second-largest IPO market in 2024. However, in early 2025, it has witnessed a 58% decline. While ₹1.60 lakh crore (approximately US$19.5 billion) was raised through 91 IPOs in 2024, only 11 IPOs have been launched so far in 2025, raising just ₹21,685 crore (approximately US$2.6 billion). The year-wise figures are as follows:
Year Number of IPOs Amount Raised (₹ crore)
2025 11 21,685
2024 91 1,60,000
2023 57 49,437
2022 40 59,938
2021 63 1,20,000
Investor Caution
Sandeep Agarwal, CEO of online automobile marketplace Droom, stated that they have decided not to file the IPO draft until June. Retail investor confidence has wavered, and they are avoiding taking significant risks. Experts believe that if the current global economic tensions, particularly the US-China trade war and other geopolitical issues, persist, the IPO market may experience further slowdown.
SEBI approvals typically have a one-year validity. If companies fail to launch their IPOs within this period, they will have to reapply, lengthening the process. This is prompting companies to proceed cautiously.
