IPO activity has slowed amid a secondary market correction, with no mainboard listings in the last three weeks. After a surge in 2024, new offerings have diminished significantly.
In January, only five companies listed their shares, and in February, just four—compared with 16 in December 2024. Several firms, including Advanced Sys-tek, SFC Environmental Technologies, and Viney Corporation, even pulled back their IPO plans by retracting their draft papers earlier this year.
Several firms, including Advanced Sys-tek, SFC Environmental Technologies, and Viney Corporation, withdrew their IPO plans by retracting their draft papers during January and February.
Fewer listings and withdrawn IPO drafts
Quality Power Electrical Equipment Ltd was the most recent IPO, opening for a three-day bidding process on 14 February. However, the overall slowdown reflects broader investor caution driven by the secondary market correction and lacklustre corporate earnings. Over the past 13 consecutive weeks, FPIs have recorded a net outflow, further underlining the prevailing market uncertainties.
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Market outlook
Despite the current downturn, experts remain optimistic about a revival in the IPO market as conditions stabilise.
With 45 companies already approved by SEBI and a robust pipeline of filings—including nearly 30 preliminary drafts and plans for a maiden REIT public issue by Knowledge Realty Trust—analysts expect renewed investor interest in the coming months.
Adjustments in IPO pricing may be necessary to attract investors, potentially paving the way for a market rebound in the near future.
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With inputs from PTI
