IPO plans are being impacted as the West Asia conflict fuels market volatility. It prompted companies to delay or recalibrate listings amid uncertain investor sentiment and fluctuating equity markets.
The Indian currency has depreciated 4.23% against the dollar since the Middle East conflict began. This has sparked a widespread selloff by foreign institutional investors, curbing the listing sentiment of several large companies.
Many companies have temporarily paused or deferred their IPO preparations due to concerns over valuations amid a turbulent stock market, two people said on the condition of anonymity. Last month, PhonePe announced it would temporarily halt its IPO plans due to geopolitical tensions and instability in global capital markets.
“We are closely monitoring the macroeconomic environment and capital market conditions to identify the most opportune time for our listing,” said a spokesperson for Curefoods, a Bengaluru-based cloud kitchen operator.
Companies such as Turtlemint, Indo-Mim, Inframarket, Symbiotech Pharmalabs, Duroflex, and KKR-backed Leap India are taking a more calibrated approach for a public listing in the current climate. All these companies have secured approval from market regulator Securities and Exchange Board of India (Sebi) to go public, according to data from Prime Database.
“The recent pause in IPO activity reflects a rational recalibration rather than a structural shift in market appetite. Heightened global volatility, persistent macro uncertainties, and uneven liquidity conditions have led issuers to defer listings in favour of better price discovery and stronger investor participation,” said Raghav Gupta, joint chief executive officer (CEO), IIFL Capital.
“We expect activity to revive as visibility on interest rates, geopolitical developments, and earnings trajectories improves,” Gupta said.
The West Asia war has drained momentum from Indian equities. Nearly half of the Nifty 500 stocks, 242 companies, were trading close to 52-week lows, compared to just 61 near their highs, according to National Stock Exchange (NSE) data on 30 March. It highlights the depth of the sell-off, according to Mint.
Prime Database’s managing director, Pranav Haldea, said that the companies adopting a wait-and-watch mode till they see some stability. “Like the last few years, we might see a lot of issues bunched up towards the second half of the calendar year as markets are not very conducive presently,” he said.
Experts have warned that persistent geopolitical tensions are unlikely to allow a quick reversal of losses, deepening caution that has triggered fund outflows and a slowdown in growth.