IPO buzz fizzles: 6 out of 11 stocks of 2025 sink below issue price; Ather Energy, Quality Power, Indo Farm lead fall

Will slowdown in IPO market end soon?

According to market experts, the dry spell in the IPO market will end soon as secondary market has seen remarkable recovery despite multiple headwinds such as Indo-Pak conflict, Trump’s tariff tensions, and global economic growth concerns.

The domestic benchmark indices BSE Sensex and NSE Nifty have risen over 10% from their recent lows, driven by increasingly accommodative monetary policies, strong macros, and supportive market conditions.

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

According to Bajaj Broking Research, 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.